August 11, 2007	Saturday	Rajab 26, 1428

KARACHI, Aug 10: State-run Pakistan Petroleum (PPL) on Friday reported a 25.15 per cent jump in full-year net profit, fuelled by higher production and rising oil and natural gas prices.

In a statement to the Karachi Stock Exchange (KSE) PPL, which operates Pakistan’s largest gas field at Sui in Balochistan, earned a net profit of Rs16.77 billion in the year to June 30.

This compared with a net profit of Rs13.401 billion for the previous year.

The result was below analysts’ forecasts ranging between Rs17.894 billion and Rs18.327 billion.

“The key reason for the increase in earnings is due to the rise in well head gas prices in Sui and Kandkhot fields,” said Mohammad Fawad Khan, analyst at KASB Securities Ltd.

Well head gas prices rose by 29 per cent as part of a gas sales agreement with the government, according to Oil and Gas Regulatory Authority (Ogra).

The company accounts for 26 per cent of the country’s gas production.PPL also has five smaller fields in Balochistan and Sindh.

PPL -- the country's fourth-largest listed company -- reported earnings per share of Rs24.45, compared with Rs19.54 a year earlier.

PPL also announced a final cash dividend of Rs6.5 per share, bringing the total payout to Rs11.

It also announced 10 per cent bonus shares.

PPL, which is high on the government's sell-off agenda, was partly privatised in July 2004, when the government sold 102.8 million shares to the public at Rs55 each.

The state still holds a 78.4 per cent stake in the firm, while 6 per cent is held by the World Bank’s private sector arm, International Finance Corp. The public holds 15 per cent.

—Reuters