KARACHI: Pakistan Oilfields Limited’s (POL) consolidated profit increased 15% to Rs2.64 billion in the quarter ended September 2017 on the back of higher oil and gas sales to utility companies, according to a bourse filing on Thursday.
The oil and gas exploration and production company had registered a profit of Rs2.29 billion in the corresponding period (July-September) of previous year.
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Earnings per share rose to Rs11.14 from Rs9.64. POL’s share price dropped 1.48%, or Rs8.89, to Rs588.13 with 820,500 shares changing hands at the Pakistan Stock Exchange.
Net sales surged 26% to Rs7.41 billion in the Jul-Sep quarter from Rs5.86 billion in the corresponding quarter of previous year.
The surge came in the wake of “15-18% increase in oil and gas production while improvement in oil and gas prices also supported revenues”, Sherman Securities said in post-result comments.
Taurus Securities added the price of benchmark Arab Light Oil increased 17% on a year-on-year basis.
Exploration cost increased four times to Rs272.44 million from Rs64.49 million. POL’s share in profits of associated companies (net of impairment loss) dropped to Rs94.24 million from Rs510.32 million.
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Other income, however, rose to Rs248.60 million in the Jul-Sep quarter from Rs163.86 million in the same quarter of last year.
Topline Securities added POL’s oil volumes improved around 9% year-on-year to 6,700 barrels per day. “Oil volumes improved mainly due to addition from the Mardankhel field, where POL has 28% stake, which contributed around 13% to its average oil production in the first quarter of fiscal year 2018.”
Mardankhel field was also a major contributor to POL’s gas production, which grew 14% year-on-year to average 81 million cubic feet per day, it said.
The company booked an impairment loss on its associates – National Refinery and Attock Petroleum – in the quarter, which led to 82% year-on-year decline in associates’ profits during the quarter.
“We flag lower-than-anticipated international oil prices, significant exploration and development cost and unexpected field shutdown as key risks for POL,” Topline said.
Published in The Express Tribune, October 20th, 2017.
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