Trade Chronicle May & June 2015

TRADE CHRONICLE
Oil & Gas Industries
PPL earns Rs. 7.808
billion in 1Q 2015
Pakistan Petroleum Limited (PPL)
has announced a net profit of Rs7.808
billion, translating in the earnings per
share (EPS) of Rs3.96 for the quarter
ended March 31, 2015, says a
company statement, recently.
The company had posted a profit of
Rs10.576 billion and EPS of Rs5.36
in the same quarter last year.
The sales revenue for the quarter
under review stood at Rs23.039 billion
as against Rs30.764 billion in the
corresponding quarter last year, it
said.
Shahbaz Ashraf at Arif Habib
Limited said the decline in profitability
was due to higher field expenditures
and lower oil prices, resulting in net
revenues to decrease by 15.4 percent.
In addition, the effective taxation for
the quarter stood at 26 percent as
compared to 37 percent in the
previous quarter.
“During the quarter, the company
posted net sales of Rs22.704 billion,
a decline of 15.4 percent attributable
to 31 percent lower oil prices, despite
oil production recording an uptick of
one percent, whereas gas production
remained flat.”
“Field expenditures increased to
Rs11.007 billion, a rise of 26.1
percent. The field expenditures were
higher than the market expectations,
which aided the company to book
earnings lower-than-expectation
earnings.”
For the nine-month period ended
March 31, 2015, PPL posted a net
profit of Rs30.454 billion as against
the profit of Rs37.193 billion in the
same period last year.
OGDCL earns Rs20.2bn
in Jan-March
The Oil and Gas Development
Company Ltd (OGDCL) recorded an
after-tax profit of
Rs20.2 billion
during Jan-March,
a quarter-onquarter
rise of 3.4
per cent from
Rs19.5bn (eps
Rs4.54).
This took its July-
March after-tax
profit to Rs68bn (eps 15.81)
compared to Rs90bn (eps Rs21.14)
a year earlier.
“The nominal increase on a QoQ
basis is due to lower exploration
expense, higher than expected other
income and lower taxation,” said
analyst Shahbaz Ashraf at Arif Habib
Limited.
The company also declared third
interim cash dividend of Rs1.75 per
share, taking nine-month cash
dividend to Rs6.25 per share.
During Jan-March,
the company posted
net sales of
Rs44,049m, a
decline of 22pc
QoQ attributable to
31pc lower oil prices
despite both oil and
gas production
exhibiting an uptick
of 1pc and 2pc,
respectively. Effective taxation was
recorded at 29pc in 3Q compared to
41pc recorded in 2Q.
SNGPL gets Rs 17.7
billion financing
Sui Northern Gas Pipelines Limited
(SNGPL) has entered into loan
agreement worth Rs 17.70 billion
with a consortium of banks led by
Bank Alfalah Limited.
Subject loan has been arranged for
financing of infrastructure
development for smooth
transmission of RLNG and
indigenous supply to its intended
consumers. In the first phase,
pipeline of 42" dia x 110 KM will
be laid from SAWAN to Qadirpur.
After this augmentation, SNGPL's
network downstream Sawan would
be able to pick up additional 400
MMCFD LNG supply and 160
MMCFD anticipated / existing
indigenous gas supplies. The project
is expected to complete by the end
of this year.
Trade Chronicle - May - June 2015 - Page # 35