AKD Securities Limited - Off the Analyst's Desk.

Karachi -- October 27, 2022 (PPI-OT)

PPL: Phenomenal Topline Growth in 1QFY23

Pakistan Petroleum Limited (PPL) posted consolidated earnings of PkR26.3bn or PkR9.68/sh for 1QFY23, higher by 8.3xQoQ and 56%YoY - higher than market estimates.

Net Sales for the quarter clocked in at PkR72.8bn, higher by 17%QoQ and 67%YoY. The growth during the quarter was aided by the weaker local currency, which averaged PkR223/US$ in 1QFY23, compared to PkR194/US$ in the previous quarter. This marks the highest net sales posted by the company in its history.

The company was able to keep its operating expenses in check, with the company posting PkR11.6bn under the head, higher by a minor 5% over the previous quarter. The operating expenses during the period were corresponded to ~15.9% of net sales, compared to 17.8% in the previous quarter and 23.9% in the same period last year. Over the past 4 quarters, the metric has averaged 20%.

Exploration expenses for the quarter came in at PkR1.7bn, lower by 88%QoQ and 64%YoY. The...