Pakistan Petroleum Limited’s (PPL) consolidated profit dropped almost 17% to Rs49.42 billion in the year ended June 30, 2020 due to decrease in sale of oil and gas and the income earned from other than the core business.
The state-owned oil and gas exploration firm had booked the profit at Rs59.46 billion in the previous year ended June 30, 2019, according to the company’s profit or loss accounts reported to the Pakistan Stock Exchange (PSX) on Friday.
Accordingly, the earnings per share (EPS) dropped to Rs18.16 in the year under review from Rs21.85 in the previous year.
The board of directors has recommended a cash dividend of Rs1 per share along with the financial results that is subject to approval by the members at the forthcoming annual general meeting (AGM) of the company. The dividend will be paid to those shareholders whose names will appear in the register of members on October 15, 2020.
PPL’s share price dropped 2.59%, or Rs2.67, to close at Rs100.44 with a volume of 8.57 million shares at PSX in a session ended under selling pressure.
The revenue from sale of hydrocarbons dropped 4% to Rs157.99 billion compared to Rs164.37billion. The drop in revenue is seen due to decline in oil and gas price since Covid-19 outbreak and low demand for oil and gas from the fields.
The other income halved to Rs6.58 billion in the year compared to 15.68 billion in the prior year.
Moreover the finance cost increased to Rs1.11 billion compared to Rs777.37 million. Administrative expenses surged to Rs3.08 billion compared to Rs2.45 billion.