PPL posts Rs99bn profit, makes 11 discoveries

Pakistan Petroleum Ltd (PPL) reported a profit after tax of Rs99 billion for FY26, a result that underlines the company’s stronger cash generation and operational resilience. The PPL profit came alongside record collections of Rs284 billion and 11 new gas discoveries that added 242 billion cubic feet (BCF) to its 2P reserves.

PPL profit and production highlights

PPL disclosed the results at its 75th annual general meeting, where shareholders approved the FY26 financial statements and a final cash dividend of 60 percent on ordinary shares, taking the total dividend for the year to 120 percent. Average production during the year was 649 million cubic feet per day (mmcfd), about 3 percent higher than the prior year despite ongoing gas curtailment.

The company drilled seven exploration and four development wells in FY26 and recorded 11 discoveries — two in operated assets and nine in partner-operated blocks — which together added 242 BCF to PPL’s proved and probable (2P) reserves.

Strategy, assets and diversification

PPL secured eight offshore blocks in the Offshore Bidding Round 2025, taking operator roles in two and partner roles in six. The company also finalised a farm‑out agreement with Turkish Petroleum Overseas Company for the Eastern Offshore Indus Block C, a move PPL said strengthens Pakistan–Türkiye energy cooperation.

Beyond hydrocarbons, PPL is expanding into minerals by establishing PPL Minerals as a dedicated business unit. The BLZ project has moved into the execution phase, mineral exploration has expanded in Chagai, and opportunities are being evaluated in Khyber Pakhtunkhwa.

What This Means for Pakistan

Stronger collections and a large cash dividend signal healthier cash flows within one of Pakistan’s largest upstream firms, which can support further investment in exploration and development. The additions to 2P reserves (242 BCF) and higher average production help relieve pressure on domestic gas supplies, though the company continues to operate amid gas curtailment and broader sector challenges such as circular debt and security risks.

Securing offshore acreage and international farm‑outs may attract foreign capital and technical expertise, which is important for sustaining output and finding new resources. The company’s move into minerals also aligns with national efforts to diversify revenue streams from the natural‑resources sector.

Background

PPL, one of Pakistan’s oldest exploration and production companies, has maintained operations through geopolitical uncertainty, volatile energy markets and declining output from mature fields. Management cited operational efficiency and financial discipline as drivers of the FY26 results and noted continued development activity at Offshore Block 5 through its operated Pakistan International Oil Ltd.

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Sources: News Source