Quarterly Report September 2011

Exploring

SOL UT I ON S

Contents
02 03 04 05 09 10 11 12 13 14 Vision - Mission Core Values Company Information Directors Interim Review Condensed Interim Balance Sheet Condensed Interim Profit and Loss Account Condensed Interim Statement of Comprehensive Income Condensed Interim Cash Flow Statement Condensed Interim Statement of Changes in Equity Notes to and Forming Part of the Condensed Interim Financial Statements

Vision
To maintain PPL's position as the premier producer of hydrocarbons in the country by exploiting conventional and unconventional oil and gas resources, resulting in value addition to shareholders investment and the nation as a whole.

Mission
To sustain long-term growth by pursuing an aggressive hydrocarbons exploration and production optimisation program in the most efficient manner through a team of professionals utilizing the latest developments in technology, while ensuring that quality is an integral part of all operations and maintaining the highest standards of health, safety, environment protection and addressing community development needs.

Pakistan Petroleum Limited Quarterly Report September 2011

02

Core Values
Recognise that leadership, empowerment and accountability are essential for corporate success. Pursue the highest standards of ethical behaviour and integrity. Consider our people as the most important resource. Value creativity and innovation. Committed to excellence in all spheres of performance. Work as a team and advocate teamwork. Respect the environment and remain committed to its protection.

03

Company Information

Board of Directors Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Hidayatullah Pirzada - Chairman (Non-Executive Director) Asim Murtaza Khan - Chief Executive Officer / Managing Director Sajid Zahid (Non-Executive Director) Saifullah Khan Paracha (Non-Executive Director) Zain Magsi (Non-Executive Director) Saquib H. Shirazi (Non-Executive Director) Saeed Akhtar (Non-Executive Director) Javed Akbar (Non-Executive Director) Sher Muhammad Khan (Non-Executive Director) Raashid Bashir Mazari (Non-Executive Director)

Company Secretary Mr. M. Mubbasshar Siddiqui Auditors M/s Ernst & Young Ford Rhodes Sidat Hyder Chartered Accountants Registered Office P.I.D.C. House, Dr. Ziauddin Ahmed Road, P.O. Box 3942, Karachi-75530. Telephone & Fax UAN: 111-568-568 Fax: 021-35680005 / 35682125 Website & Email www.ppl.com.pk info@ppl.com.pk Shares Registrar FAMCO Associates (Pvt.) Ltd. 1st Floor, State Life Building No.1-A I.I. Chundrigar Road, Karachi-74000. Legal Advisors Surridge & Beecheno

Pakistan Petroleum Limited Quarterly Report September 2011

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Directors Interim Review

Your directors are pleased to present the unaudited condensed interim financial statements for the quarter ended September 30, 2011 and a brief review of the Company operations. FINANCIAL AND OPERATIONAL HIGHLIGHTS Financial The Company's performance improved significantly with respect to revenue and profitability during the quarter ended September 30, 2011. Profit after taxation of the Company increased by 27% to Rs 9,886 million during the quarter ended September 30, 2011, as compared to Rs 7,789 million in the corresponding period last year. The key financial results of the Company during the quarter ended September 30, 2011 are as follows: Quarter ended Quarter ended September September 30, 2011 30, 2010 Rs million Rs million Sales revenue (net) Profit before taxation Taxation Profit after taxation Basic and Diluted Earnings Per Share (Rs) 22,647 14,718 4,832 9,886 7.52 18,218 11,683 3,894 7,789 (Restated) 5.93

Profitability during the current quarter ended September 30, 2011 increased, as compared to the corresponding quarter last year, due to enhanced oil and gas sales volumes, impact of higher international oil prices and depreciation of Pak Rupee against US Dollar. Increase in gas sales from Kandhkot field and Latif Block, gas and condensate sales from Tal Block and crude oil and gas sales from Nashpa Block were partially offset by decrease in gas sales from Sui, Adhi, Hala and Sawan fields, and decrease in condensate sales from the Hala field. Other operating income also increased mainly due to increase in income from financial assets by Rs 510 million during the current quarter, as a result of comparatively higher investments and interest rates. Operational A comparison of Company's share of sales volume from all PPL-operated and partner-operated fields is given below: Unit Natural Gas Crude Oil / Natural Gas Liquids (NGL) / Condensate Liquefied Petroleum Gas (LPG) MMCF BBL Tonnes Quarter ended Quarter ended September September 30, 2011 30, 2010 82,392 687,572 5,171 81,065 635,855 6,423

05

Directors Interim Review

CORPORATE STRATEGY AND FOCUS AREAS PPL's business strategy is premised on enhancing its hydrocarbon reserves to address the increasing energy deficit and secure long term growth. To this end, the Company has launched an aggressive acquisition, exploration and development program. Simultaneously, efforts are being made to scope out business growth opportunities by forging linkages with local and international companies to spread risk, share technical resources and knowledge to maximise mutual benefits. Exploration The Company's exploration strategy is aimed at replenishing and enhancing its existing hydrocarbon reserves, through exploration and production optimisation in order to maintain its position as a premier E&P Company of the country. The Company continued its efforts to maintain its aggressive exploration plan and exploration activities progressed on fast-track basis, to meet the committed timeframe in all blocks including those acquired during bidding round 2009. A detailed exploration program is in place with timelines for different activities and key objectives to be achieved on yearly basis. PPL continued its endeavours to acquire prospective areas overseas. In this regard, the Company intends to participate in the fourth Exploration Licensing Round in Iraq, planned to be held in January 2012, in which twelve blocks have been offered. The Company is among the forty six prequalified companies who can participate in the bidding. New and Ongoing Activities Presently, the Company's portfolio consists of thirty five exploration blocks (including one offshore block Indus-G in assignment process), out of which nineteen are PPL operated and the remaining sixteen, including three offshore blocks and one block in Yemen, are partner operated. New and ongoing activities that took place in the current period were as follows: PPL-operated Areas In Hala Block, second exploration well Bhit Shah X-1 reached TD of 3,730m in August 2011. Currently, the potential reservoir zone is under testing. Partner-operated Areas In South West Miano-II, the fourth exploratory well Misri Bhambro-1 was spud-in in August 2011. The well was tested and has produced minor gas. Activities related to appraising the Makori East discovery through EWT of the discovery well Makori East-1 are in progress, with first gas expected by January 2012.

Pakistan Petroleum Limited Quarterly Report September 2011

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Directors Interim Review

Appraisal and Development In Sui Field, horizontal development well Sui-93 (M) has been successfully completed as a gas producer. In Chachar Field, development well Chachar-4 (U/M) was spud-in in July 2011 and reached TD of 1,360m inside SML. Currently, well completion operations are in progress. Well Qadirpur-32 A was spud-in in July 2011 for workover / side track. The job has been completed in August 2011. Post completion test result shows about 3 MMscfd gas at 620 psig flowing wellhead pressure. Drilling of Miano-15 is planned in second quarter of 2011-12. In Tal Block, appraisal well Makori East-2 and development well Manzalai-9 were spud-in in July 2011 and the drilling is in progress. In Nashpa Block, first appraisal well Nashpa-2 was spud-in in September 2010 and second appraisal well Nashpa-3 was spud-in in March 2011, and the drilling is in progress. In Kirthar Block, appraisal well Hallel X-1 (re-entry) was spud-in in March 2011 and drilled to a depth of 2,882m. Preparations are underway to conduct hydraulic fracture to increase gas flow. Appraisal of Rehman discovery in Kirthar block through EWT of the discovery well Rehman-1 and appraisal well Hallel X-1 is planned. Commencement of EWT production is envisaged by April 2012, which is contingent upon the announcement of pricing policy for tight gas by the Government. Corporate Social Responsibility PPL's CSR initiatives over the years have focused on education, healthcare, infrastructure development, skill development and livelihood generation. In addition, PPL has always come forward in a big way to alleviate the sufferings of the humanity in times of any disaster through emergency relief and rehabilitation. PPL's CSR objective has always been the welfare of its communities through innovative, equitable and sustainable schemes. With the passage of time, PPL's CSR program has evolved in creating and strengthening institutions for long term development of the area. During the current quarter, the Company remained proactively involved in flood relief efforts in affected areas. Human Resources The Company's human resource strategy is geared for recruitment, capacity building and retention of top-caliber staff through an enabling corporate environment, competitive remuneration and timely acknowledgement of initiative and performance.

07

Directors Interim Review

Occupational Health, Safety and Environment The Company seeks to maintain and continually improve its position as a key provider of safe energy through indigenous resources by adherence to Health, Safety and Environment statutory requirements and standards. In the current three months period, the Loss Time Injury and Illness Rate (LTII) was 0%. Quality Management System PPL is actively progressing with its plans to enhance assets integrity with institutionalisation of quality in various business processes. The Company is working to embed and nurture quality management in all its operations and has the largest number of departments and production facilities with ISO 9001 certification in the local E&P sector. Industrial Relations The Industrial Relations climate, law and order situation and overall discipline remained satisfactory at all locations including Sui Gas Field. ACKNOWLEDGEMENT The Board is thankful for the dedication and stake of the management and staff, as well as support by the Government. The Board would also like to place on record, gratitude to our shareholders for their trust and confidence in the PPL brand.

(HIDAYATULLAH PIRZADA) CHAIRMAN Karachi: October 25, 2011

Pakistan Petroleum Limited Quarterly Report September 2011

08

Condensed Interim Balance Sheet

As at September 30, 2011

Note

September 30, 2011 Unaudited Rs '000

June 30, 2011 Audited

NON-CURRENT ASSETS Fixed assets Property, plant and equipment Intangible assets Equity-accounted investment in joint venture Long-term investments Long-term loans - staff Long-term deposit Long-term receivables CURRENT ASSETS Stores and spares Trade debts Loans and advances Trade deposits and short-term prepayments Accrued financial income Current maturity of long-term investments Current maturity of long-term receivables Other receivables Short-term investments Taxation Cash and bank balances

45,791,048 480,001 46,271,049 376,024 15,349,600 20,039 645,000 31,178 62,692,890 2,375,359 40,070,530 576,719 422,469 635,710 799,950 4,251 162,963 25,920,695 1,423,802 72,392,448 135,085,338

45,418,272 487,195 45,905,467 370,024 15,732,524 18,720 645,000 11,172 62,682,907 2,272,952 32,096,358 505,889 134,647 501,290 49,950 4,251 280,490 20,851,145 3,248,006 1,503,126 61,448,104 124,131,011 11,949,930 82,473,103 94,423,033 5,729,595 101,848 1,340,573 1,172 3,026,317 10,199,505 19,453,023 53,428 2,022 19,508,473 124,131,011

SHARE CAPITAL AND RESERVES Share capital Reserves NON-CURRENT LIABILITIES Provision for decommissioning obligation Liabilities against assets subject to finance leases Deferred liabilities Deferred income Deferred taxation CURRENT LIABILITIES Trade and other payables Current maturity of liabilities against assets subject to finance leases Current maturity of deferred income Taxation CONTINGENCIES AND COMMITMENTS

13,144,909 88,774,715 101,919,624 5,766,838 86,870 1,391,111 1,172 2,846,527 10,092,518 20,234,339 54,970 2,022 2,781,865 23,073,196 135,085,338

10

The annexed notes 1 to 18 form an integral part of these financial statements.

Director
09

Chief Executive

Condensed Interim Profit and Loss Account (Unaudited)

For the quarter ended September 30, 2011

Note

Quarter ended September 30, 2011

Quarter ended September 30, 2010

Rs '000 Sales - net Field expenditures Royalties 11 22,647,085 (5,692,598) (2,693,597) (8,386,195) 14,260,890 Share of profit in equity - accounted investment in joint venture Other operating income Other operating expenses Finance costs Profit before taxation Taxation Profit after taxation 13 12 6,000 1,584,820 (1,090,500) (43,117) 14,718,093 (4,831,544) 9,886,549 18,218,622 (4,405,426) (2,162,853) (6,568,279) 11,650,343 7,994 950,789 (873,128) (52,600) 11,683,398 (3,893,826) 7,789,572 (Restated) Basic and diluted earnings per share (Rs) 16 7.52 5.93

The annexed notes 1 to 18 form an integral part of these financial statements.

Director
Pakistan Petroleum Limited Quarterly Report September 2011

Chief Executive
10

Condensed Interim Statement of Comprehensive Income (Unaudited)

For the quarter ended September 30, 2011

Quarter ended September 30, 2011

Quarter ended September 30, 2010

Rs '000 Profit after taxation Other comprehensive income-net of taxation Total comprehensive income 9,886,549 9,886,549 7,789,572 7,789,572

The annexed notes 1 to 18 form an integral part of these financial statements.

Director
11

Chief Executive

Condensed Interim Cash Flow Statement (Unaudited)

For the quarter ended September 30, 2011

Note

Quarter ended September 30, 2011

Quarter ended September 30, 2010

Rs '000 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers Receipts of other operating income Cash paid to suppliers / service providers and employees Payment of indirect taxes and Government levies including royalty Income tax refund / (paid) Finance costs paid Long-term loans - staff (net) Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditure Sale of long-term investment Purchases of short-term investments (net) Long-term receivables Financial income received Proceeds on sale of property, plant and equipment Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Payment of liabilities against assets subject to finance leases Dividends paid Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period (12,587) (1,688,706) (1,701,293) 4,990,226 22,354,271 14 27,344,497 (80,046) (80,046) 182,543 27,686,554 27,869,097 (1,793,861) 35,328 (20,006) 1,039,127 219 (739,193) (2,418,778) (1,510,553) 796,881 3,900 (3,128,550) 20,145,355 8,695 (6,010,707) (7,723,534) 1,018,534 (5,876) (1,755) 7,430,712 17,697,040 86,137 (3,258,993) (7,968,072) (3,143,230) (16,166) (5,577) 3,391,139

The annexed notes 1 to 18 form an integral part of these financial statements.

Director
Pakistan Petroleum Limited Quarterly Report September 2011

Chief Executive
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13
Revenue reserves Capital reserve Total General and contingency reserve Insurance reserve Unappropriated profit Total Rs 000 Assets acquisition reserve Total reserves Convertible preference 138 138 138 138 1,428 69,761 19,021,894 25,000,000 5,000,000 5,000,000 1,428 69,761 14,021,894 20,000,000 48,380,020 (5,000,000) (5,000,000) (1,194,979) (2,389,958) 9,886,549 44,681,632 1,428 69,761 14,021,894 20,000,000 36,673,710 7,789,572 (4,979,080) (4,979,080) 7,789,572 70,765,365 82,471,675 (1,194,979) (2,389,958) 9,886,549 88,773,287 (1,991,632) (1,991,632) 5,000,000 (5,000,000) (1,991,632) (4,979,080) 7,789,572 70,766,793 82,473,103 (1,194,979) (2,389,958) 9,886,549 5,500,000 (5,500,000) 1,428 69,761 8,521,894 15,000,000 46,354,850 69,946,505 69,947,933 79,906,231 (4,979,080) 7,789,572 82,716,723 94,423,033 (2,389,958) 9,886,549 88,774,715 101,919,624 -

Subscribed and paid-up share capital

Ordinary

Balance as at June 30, 2010

9,958,160

Appropriation of insurance reserve for the year ended June 30, 2010

Appropriation of assets acquisition reserve for the year ended June 30, 2010

For the quarter ended September 30, 2011

Issuance of bonus shares @ 20% (two shares for every ten ordinary shares held)

1,991,632

Final dividend on ordinary shares @ 50% for the year ended June 30, 2010

Total comprehensive income for the period ended September 30, 2010

Balance as at September 30, 2010

11,949,792

Balance as at June 30, 2011

11,949,792

Appropriation of insurance reserve for the year ended June 30, 2011

Appropriation of assets acquisition reserve for the year ended June 30, 2011

Issuance of bonus shares @ 10% (one share for every ten ordinary shares held)

1,194,979

Final dividend on ordinary shares @ 20% for the year ended June 30, 2011

Total comprehensive income for the period ended September 30, 2011

Balance as at September 30, 2011

13,144,771

Condensed Interim Statement of Changes in Equity (Unaudited)

The annexed notes 1 to 18 form an integral part of these financial statements.

Director

Chief Executive

Notes to and Forming Part of the Condensed Interim Financial Statements (Unaudited)
For the quarter ended September 30, 2011

1.

LEGAL STATUS AND NATURE OF BUSINESS Pakistan Petroleum Limited (the Company) was incorporated in Pakistan in 1950 with the main objectives of conducting exploration, prospecting, development and production of oil and natural gas resources. The Company is listed on all the three stock exchanges of Pakistan with effect from September 16, 2004. The registered office of the Company is located at PIDC House, Dr. Ziauddin Ahmad Road, Karachi.

2. 2.1

BASIS OF PRESENTATION This condensed interim financial report of the Company for the quarter ended September 30, 2011 has been prepared in accordance with the requirements of the International Accounting Standard 34 - Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed. These condensed interim financial statements are unaudited and do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the financial statements of the Company for the year ended June 30, 2011. Securities and Exchange Commission of Pakistan (SECP) through its letter CLD/RD/CO.237/PPL/2004 dated July 6, 2004 has exempted the Company from preparation of consolidated financial statements under section 237 of the Companies Ordinance, 1984. Accordingly, the Company has not prepared the condensed interim consolidated financial statements for the quarter ended September 30, 2011 in respect of its investment in The Pakistan Petroleum Provident Fund Trust Company (Private) Limited, a wholly owned subsidiary. SIGNIFICANT ACCOUNTING POLICIES The accounting policies and the methods of computation adopted in the preparation of this condensed interim financial report are the same as those applied in the preparation of the financial statements for the year ended June 30, 2011. The BESOS scheme, including its terms and conditions, are the same as mentioned in the Annual Report 2011. SECP had granted exemption from application of IFRS-2 (Share Based Payments). Had the exemption not been granted by SECP, the impact would have been as follows: Quarter ended Quarter ended September September 30, 2011 30, 2010 Rs '000 Staff costs of the Company for the period would have been higher by: Profit after taxation would have been lower by: Earnings per share would have been lower by (Rs): 586,393 586,393 0.45 586,393 586,393 0.45

2.2

2.3

3.

Pakistan Petroleum Limited Quarterly Report September 2011

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Notes to and Forming Part of the Condensed Interim Financial Statements (Unaudited)
For the quarter ended September 30, 2011
Note

September June 30, 2011 30, 2011 Unaudited Audited Rs '000 5,277,535 5,277,535 4,691,142 4,691,142

Retained earnings would have been lower by: Reserves would have been higher by: 4. PROPERTY, PLANT AND EQUIPMENT Opening Net Book Value (NBV) Additions to: - owned assets - assets subject to finance leases Disposals / adjustments during the period / year (NBV) Depreciation / amortisation charged during the period / year Capital work-in-progress 4.1 Capital work-in-progress Plant, machinery, fittings and pipelines Prospecting and development wells Land, buildings and civil constructions Capital stores for drilling and development 5. LONG-TERM INVESTMENTS Investment in related party Fully paid shares in a subsidiary Other investments Held-to-maturity - Term Finance Certificates - Pakistan Investment Bonds - GoP Ijara Sukuk - Local currency term deposits with banks - Foreign currency term deposits with banks Less: Current maturities - Term Finance Certificates - Pakistan Investment Bonds Designated at fair value through profit or loss - Mutual Funds 4.1

39,838,249 1,092,338 1,092,338 40,930,587 (46) (1,402,531) 39,528,010 6,263,038 45,791,048

26,909,324 18,058,137 76,344 18,134,481 45,043,805 (322,474) (4,883,082) 39,838,249 5,580,023 45,418,272

1,291,471 4,883,369 88,198 6,263,038

1,176,066 4,280,648 69,458 53,851 5,580,023

149,850 1,386,270 2,002,100 2,000,000 4,010,699 9,548,919 (49,950) (750,000) (799,950) 6,600,630 15,349,600

149,850 1,381,803 2,002,300 2,000,000 3,797,532 9,331,485 (49,950) (49,950) 6,450,988 15,732,524

15

Notes to and Forming Part of the Condensed Interim Financial Statements (Unaudited)
For the quarter ended September 30, 2011
Note

September 30, 2011 Unaudited Rs '000

June 30, 2011 Audited

6.

TRADE DEBTS Unsecured and considered good Related Parties Central Power Generation Company Limited (GENCO) 6.2 Sui Northern Gas Pipelines Limited (SNGPL) Sui Southern Gas Company Limited (SSGCL) Non-related parties Attock Refinery Limited (ARL) Byco Petroleum Pakistan Limited Others

8,744,337 12,863,825 10,549,812 32,157,974 6,275,200 1,181,220 456,136 7,912,556 40,070,530

7,589,839 8,894,829 8,718,652 25,203,320 5,131,273 1,181,220 580,545 6,893,038 32,096,358

6.1

Trade debts include overdue amount of Rs 18,159 million (June 30, 2011: Rs 14,034 million) receivable from the State controlled utility companies (i.e. GENCO, SNGPL and SSGCL) and Rs 3,740 million (June 30, 2011: Rs 2,638 million) overdue receivable from refineries (i.e. ARL, Byco, NRL and PRL). Based on the measures undertaken by the Government of Pakistan (GoP) to resolve the Inter-Corporate Circular Debt issue, the Company considers the amounts to be fully recoverable and therefore, no provision for doubtful debts has been made in these condensed interim financial statements.

6.2

Under a novation agreement signed between PPL, WAPDA and GENCO, all duties and liabilities of WAPDA under Kandhkot Gas Sales Agreement have been transferred to GENCO. September 30, 2011 Unaudited Rs '000 June 30, 2011 Audited

7.

SHORT-TERM INVESTMENTS Held-to-maturity Local currency term deposit with banks Investment in treasury bills 9,080,000 16,840,695 25,920,695 19,152,000 1,699,145 20,851,145
16

Pakistan Petroleum Limited Quarterly Report September 2011

Notes to and Forming Part of the Condensed Interim Financial Statements (Unaudited)
For the quarter ended September 30, 2011

September 30, 2011 Unaudited Rs '000 8. DEFERRED TAXATION Credit / (debit) balances arising on account of: Exploration expenditure Amortisation of intangible assets Provision for staff retirement and other benefits Provision for obsolete / slow moving stores Provision for workers' welfare fund Provision for decommissioning obligation Accelerated tax depreciation allowances Prospecting and development expenditure Others 9. TRADE AND OTHER PAYABLES Creditors Accrued liabilities Security deposits from LPG distributors Retention money Unpaid and unclaimed dividends Gas development surcharge Federal excise duty (net) Sales tax (net) Royalties Surplus due to the President Current accounts with Joint Venture Partners Workers' profits participation fund Workers' welfare fund Others 189,794 2,184,131 169,651 456,063 821,498 4,414,993 201,276 1,192,459 3,022,920 72,539 1,935,591 790,130 4,747,003 36,291 20,234,339 (4,630,233) (85) (486,889) (28,630) (2,058,044) (193,359) 5,696,857 4,546,958 (48) 2,846,527

June 30, 2011 Audited

(4,491,298) (254) (469,201) (28,630) (1,921,295) (219,516) 5,850,327 4,305,816 368 3,026,317

209,875 2,009,831 169,651 455,730 1,864,289 2,590,407 166,702 882,960 4,804,008 72,539 1,716,062 4,446,633 64,336 19,453,023

10.

CONTINGENCIES AND COMMITMENTS There are no major changes in the status of contingencies and commitments as reported in the annual financial statements for the year ended June 30, 2011.

17

Notes to and Forming Part of the Condensed Interim Financial Statements (Unaudited)
For the quarter ended September 30, 2011

Quarter ended September 30, 2011

Quarter ended September 30, 2010

Rs '000 11. SALES-net Natural gas Gas supplied to Sui villages Internal consumption of gas Condensate / NGL Crude oil LPG 12. OTHER OPERATING INCOME Income from financial assets Income on loans and bank deposits Income on term deposits Income on long-term held-to-maturity investments Income from investment in treasury bills Gain on re-measurement / disposal of investments designated at fair value through profit or loss (net) Income from assets other than financial assets Rental income on assets Profit on sale of property, plant and equipment Profit on sale of stores and spares (net) Exchange gain on foreign currency Share of profit on sale of LPG Refund of sales tax paid under amnesty scheme Others 109,862 530,895 241,913 295,144 184,971 1,362,785 48,193 173 26 103,716 27,667 31,120 11,140 222,035 1,584,820 64,897 315,588 42,964 401,409 28,411 853,269 258 3,758 9,305 50,792 33,407 97,520 950,789 16,136,740 44,739 47,032 2,653,739 3,387,384 377,451 22,647,085 14,093,610 32,111 38,792 1,967,130 1,766,160 320,819 18,218,622

13.

TAXATION Current Deferred 5,011,337 (179,793) 4,831,544 4,196,927 (303,101) 3,893,826

14.

CASH AND CASH EQUIVALENTS Cash and bank balances Short-term highly liquid investments 1,423,802 25,920,695 27,344,497 5,371,307 22,497,790 27,869,097
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Pakistan Petroleum Limited Quarterly Report September 2011

Notes to and Forming Part of the Condensed Interim Financial Statements (Unaudited)
For the quarter ended September 30, 2011
Note

Quarter ended September 30, 2011

Quarter ended September 30, 2010

Rs '000 15. TRANSACTIONS WITH RELATED PARTIES Transactions with related parties are as follows: Sale of gas to State controlled entities (including Government Levies): GENCO SSGCL SNGPL

6.2

3,924,498 3,912,525 13,690,972 21,527,995

3,616,987 3,130,399 12,635,833 19,383,219

Trade debts and other receivables from State controlled entities Transactions with Bolan Mining Enterprises: Purchase of goods Reimbursement of employee cost on secondment Transactions with Joint Ventures: Payments of cash calls to Joint Ventures Expenditures incurred by the Joint Ventures Current account receivables from Joint Venture partners Current account payables relating to Joint Ventures Under advance balances relating to Joint Ventures Income from rental of assets to Joint Ventures Other related parties: Dividends to GoP Dividends to Trust under BESOS Transactions with retirement benefit funds Remuneration to key management personnel Payment of rental to Pakistan Industrial Development Corporation Payment to National Insurance Company Limited Payment to Pakistan State Oil Company Limited

32,195,610

31,538,955

2,486

551 2,267

2,569, 922 2,771,377 154,630 5,129 1,531,530 48,193

2,445,732 2,241,977 251,046 7,622 1,306,877 258

2,533,059 556,189 167,323 863,687 11,217 405,459 27,821

4,864,551 600,359 144,105 742,090 8,426 67,876 35,470

19

Notes to and Forming Part of the Condensed Interim Financial Statements (Unaudited)
For the quarter ended September 30, 2011

Quarter ended September 30, 2011 16. BASIC AND DILUTED EARNINGS PER SHARE

Quarter ended September 30, 2010

16.1 Basic earnings per share Profit after taxation (Rs'000)

9,886,549

Weighted average number of ordinary shares in issue 1,314,477,077 Basic earnings per share (Rs) 16.2 Diluted earnings per share Profit after taxation (Rs'000) 7.52

7,789,572 (Restated) 1,314,477,077 5.93

9,886,549

7,789,572 1,314,477,077 13,840 (Restated) 1,314,490,917 5.93

Weighted average number of ordinary shares in issue 1,314,477,077 Adjustment for convertible preference shares 13,840 Weighted average number of ordinary shares for diluted earnings per share Diluted earnings per share (Rs)

1,314,490,917 7.52

16.3 During the current period, the Company has issued 10% bonus shares (i.e. one share for every ten ordinary shares held), which has resulted in restatement of basic and diluted earnings per share for the quarter ended September 30, 2010. 17. DATE OF AUTHORISATION FOR ISSUE These condensed interim financial statements were authorised for issue on October 25, 2011 by the Board of Directors of the Company. 18. GENERAL

18.1 Figures have been rounded off to the nearest thousand rupees, unless otherwise stated.

Director
Pakistan Petroleum Limited Quarterly Report September 2011

Chief Executive
20

Email: info@ppl.com.pk Website: www.ppl.com.pk