Karachi, April 20, 2024 – Pakistan Petroleum Limited (PPL) disclosed an encouraging update on Monday regarding a substantial enhancement in its hydrocarbon production over the past six months, spanning from October 2023 to March 2024.
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PPL Commits to Funding Balochistan’s Share in BLZ Project
Karachi, February 7, 2024 – Pakistan Petroleum Limited (PPL) has taken a significant step towards supporting the development of the Balochistan region by deciding to fund the government’s share of capital contribution in the BLZ Project.
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Pakistan Awards New Exploration Blocks to Boost Reserves
Karachi, January 11, 2024 – Pakistan has taken a significant stride in its quest for energy security by awarding new exploration blocks to prominent oil and gas development companies operating within the country.
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Pakistan Petroleum Limited Announces Major Gas Discovery in Sindh Province
Karachi, November 20, 2023 – Pakistan Petroleum Limited (PPL) revealed on Monday a significant breakthrough in the energy sector with the discovery of gas and condensate in District Sujawal of the Sindh Province.
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PPL Discloses Successful Outcome of Rigless Production Enhancement Campaign
Karachi, October 6, 2023 – Pakistan Petroleum Limited (PPL), a major player in Pakistan’s energy sector, has unveiled the results of its rigless production enhancement campaign, reaffirming its commitment to bolster the country’s energy security by optimizing domestic hydrocarbon production.
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PPL Explores Engagement with Sovereign Foreign Investors in Reko Diq Project
In a strategic move to enhance the development prospects of the Reko Diq Project, Pakistan Petroleum Limited (PPL) announced its intention to explore potential engagement with sovereign foreign investors.
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PSO Joins Forces with PPL and OGDCL for Revolutionary Greenfield Refinery Project
Karachi, July 27, 2023 – In a significant move aimed at enhancing Pakistan’s energy infrastructure, Pakistan State Oil (PSO) inked Memorandums of Understanding (MoUs) with two leading exploration companies on July 27, 2023, to collaborate on the establishment of a Greenfield Refinery Project.
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Pakistan Petroleum signs agreement for Reko Diq Project
KARACHI: Pakistan Petroleum Limited (PPL) has announced signing of an agreement for reconstituted Reko Diq Project.
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Gas price hike to further push up inflation
KARACHI: The recent approval by Economic Coordination Committee (ECC) to increase the prices of gas will further push up the inflation, analysts said.
The country is already facing the alarming rise in inflation following sure in prices of petroleum products and electricity tariff.
The analysts at AKD Securities said that ECC approved hike in gas tariff after a break of almost two years, which was last increased in October 2020.
READ MORE: Gas price hike report baseless: Musadiq Malik
“The latest increase will put further pressure on already sky rocketing inflation, as manufacturers are likely to pass on the impact, resulting in higher product prices and slowdown in demand,” the analysts said.
However, the aforementioned hike will put brake on ballooning gas circular debt, which currently stands at Rs1.23 trillion. As per new flows, the move will generate Rs666 billion in revenue for gas distribution companies.
Export oriented sector including textile companies will also feel the pinch of this increase as the proposed hike for these sector stands at 77 per cent and 38 per cent, respectively.
This development will severely impact country’s exports due to rise in manufacturing cost and higher financing rate.
READ MORE: Govt. halts gas supply to export industry: APTMA
The proposed weighted average gas prices for domestic consumers stands at Rs885/mmbtu, up by 90 per cent. The government has also made some changes in domestic slabs which has now reduced to 5 as compare to 7 slabs earlier.
The gas bill of consumers who are using gas up to 400 cubic meter are likely to be affected most, due to increase of 253 per cent in tariff.
They said that the inflationary impact of the said development will be 66 basis points on Month on Month (MoM) basis, taking average inflation to 21.5 per cent for the current fiscal year.
READ MORE: FBR exempts sales tax on oxygen gas import
The gas tariff for fertilizer plants is proposed to increase by 42 per cent and 82 per cent for feed and fuel gas, respectively. As per estimates, this will increase cost of urea manufacturing by Rs420/bag for FFC, while the increase for EFERT is Rs340/bag, due to its reliance on PP12 based gas pricing.
The manufacturers are likely to pass on any increase in gas tariff as they have already increased urea price by Rs350/bag on 1st July.
The increase in gas prices is expected to bode well for the E&P sector, including Oil and Gas Development Company Limited (OGDC), Pakistan Petroleum Limited (PPL), and Mari Petroleum Company Limited (MARI), as this would lead to improved cash collection for the companies in lieu of gas supply.
READ MORE: OGDCL discovers oil, gas reserves in Sindh
As of March 2022 quarter end, OGDC’s receivables from SNGP stood at Rs142.42 million (Rs33.11/sh), whereas those from SSGC stood at Rs163.58 million (Rs38.03/sh). Similarly, PPL’s receivables stood at Rs141 million (Rs51.82/sh) from SSGC and Rs181.8 million (Rs66.81/sh) from SNGP. Whereas MARI’s receivables stand at Rs5.9 million (Rs44.90/sh) from SSGC and Rs8.3 million (Rs61.90/sh) from SNGP.
Due to liquidity issues, the companies have historically faced challenges in expanding their exploration activities. During 9MFY22, 61 per cent of PPL’s total sales were derived from SNGP and SSGC, hence PPL stands to be a major beneficiary of the proposal gas price hike.
The much waited tariff increase is a positive development for gas distribution companies as it will improve their cash flows. Similarly, this will provide a breath of fresh air to E&P sector in the form better liquidity, thus allowing them to expand their exploration activities.
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PPL announces Rs31.14 billion half year profit
KARACHI: Pakistan Petroleum Limited (PPL) on Friday announced financial results for the half year ended December 31, 2021. The company announced Rs31.14 billion as net profit for the half year.
The net profit of the company grew by over 19 per cent when compared with Rs26.11 billion in the same half of the last year.
Pakistan Petroleum Limited is a Pakistani state-owned petroleum company. The company announced earnings per share at Rs11.44 for the half year ended December 31, 2021 as compared with Rs9.59 in the same period of the last year.
READ MORE: PPL gets license for large scale mining of Lead, Zinc
The board of directors of the company at its meeting held on February 25, 2022 approved the financial statements for the half year ended December 31, 2021.
The board of directors approved an interim cash dividend for the year ending June 30, 2022 of Rs1.50 per share on ordinary shares and Rs1.5 per share on convertible preference shares. The dividend will be distributed to those members whose names appear in the register of members of the company as at the close of business on March 10, 2022.
READ MORE: PPL posts 18% net profit growth in first quarter
According to the financial results, the revenue of the company increased to Rs90.42 billion for the half year ended December 31, 2021 as compared with Rs75.81 billion in the same half of the preceding year.
Operating expenses of the company eased to Rs19.96 billion when compared with Rs22.18 billion.
Exploration expenses during the half ended December 31, 2021 increased sharply to Rs9.04 billion as compared with Rs3.27 billion in the same half of the last year.