The Pakistan Petroleum Limited (PPL) posted an Earning Per Share of Rs 25.5 in FY13 as against Rs 24.9 last year, up 3 percent but fell well short of market consensus. The earnings announcement was also accompanied by a final cash dividend of Rs 5/share (translating into full year cash payout of Rs 10/share and 20 percent bonus shares. Amid higher oil volumes and better wellhead gas prices, company’s topline grew by 6 percent to PkR102.4bn in FY13 versus PkR96bn in FY12. “The impact of the higher topline was partially diluted by 13 percent increase in field expenditure and 41 percent decline in other income,” said Nauman Khan of Shajar Research. In 4Q, the company posted an EPS of Rs 5.3 which compares unfavorably with EPS of Rs 6.8 in 3QFY13. Furthermore, the earnings are down 3 percent from the same quarter last year. Though, the company’s topline fell in line with our expectation but higher field expenditure proved to be the earning deviation. Though the earnings fell short of our expectations but we continue to hold a favorable view on the stock.
