KARACHI: The country's oil production rose 1 percent year-on-year during the first nine months of the current financial year, driven by fields such as Chak 2, Lashari Centre, Bolan East, and Bettani, according to a report by Arif Habib Limited.
The gas production showed a 3 percent year-on-year decrease. The reduction in gas production is attributable to declining production from fields such as Qadirpur, Sui, Kandhkot, and Uch (due to ATA at Uch Power Limited).
On a quarterly basis, Pakistan's oil production showed a 3 percent year-on-year growth in the third quarter of this fiscal, while its gas production showed a 2 percent year-on-year decline. During the first nine months, a total of 11 exploratory wells and 30 appraisal/development wells were drilled, against a target of 21 exploratory wells and 35 appraisal/development wells.
Regarding the financial results of listed companies in the oil and gas sector, the brokerage house said that Oil & Gas Development Company Limited (OGDC) is expected to see its earnings reach Rs171.774 billion, showing a growth of 8 percent year-on-year.
The growth in earnings is expected on account of a 2 percent year-on-year increase in oil production, rupee depreciation against dollar by 17 percent year-on-year, and the reversal of tax provisions worth Rs28 billion on the back of a favourable judgement from the court, related to depletion allowance in 2QFY24.
Pakistan Petroleum Limited (PPL) is likely to post a net profit of Rs96.305 million in 9MFY24 compared to Rs81.835 billion in 9MFY23, up by 18 percent year-on-year. The jump in earnings comes on the back of rupee depreciation against the greenback, and a hefty tax reversal in 2QFY24.
Mari Petroleum Company Limited (MARI) is expected to see its earnings reach Rs57.386 billion in 9MFY24 against Rs40.291 billion in 9MFY23, up by 42 percent year-on-year. The growth in profitability comes on the back of a 16 percent and 18 percent year-on-year jump in gas and oil production, respectively, a 19 percent year-on-year hike in the wellhead price of Mari Gas Field, and a 17 percent year-on-year devaluation of rupee against dollar.