Islamabad June 13 2024: Government of Pakistan expects 157 percent increase in cash payout of Pakistan Petroleum Limited, according to ministry of finance budget estimates.
Ministry estimates dividend of PKR 18 billion from PPL in fiscal year 2025 against PKR 7.0 billion declared in fiscal year 2024. This translate to per share cash payout of PKR 10 for next year.
The Company has experienced a commendable enhancement in collections from customers, resulting in improved collection ratio of 74 percent (49 percent during the corresponding period), i.e., PKR 195 billion were recovered during current period versus PKR 126 billion in corresponding period. Due to this favourable development, the escalation in trade debts was kept at approximately 13 percent during this period as compared to over 40 percent during FY 2023.
The upturn in collections can be attributed to the implementation of increased consumer gas prices, which took effect in January 2023, November 2023, and February 2024. This strategic adjustment has contributed to a deceleration in the accumulation of circular debt, thereby bolstering the Company’s financial resilience. It is imperative, however, to continue to monitor consumer gas prices in alignment with wellhead gas price adjustments to preempt any future resurgence of circular debt.
Moreover, the Company has demonstrated proactive engagement with stakeholders, including pertinent ministries, to address both immediate cash flow exigencies and to chart enduring solutions to the circular debt conundrum. This concerted effort underscores the Company’s commitment to sound financial stewardship and sustainable growth.
