Pakistan Oilfields second quarter profit falls 13.7 percent

KARACH: Pakistan Oilfields Limited (POL) net profit lowered 13.7 percent to Rs2.139 billion for the quarter ended December 31, 2017 translating into earnings per share (EPS) of Rs9.02, a bourse filing said on Wednesday.

POL’s net profit amounted to Rs2.47 billion with an EPS of Rs10.42 in the previous quarter ended December 31, 2016, a notice to the Pakistan Stock Exchange (PSX) said. The company has declared an interim cash dividend of Rs17.5/share along with the corporate announcement.

Analyst Sharoon Ahmed at Elixir Securities said earnings were significantly lower than the estimate as the company reversed Rs3.01 billion of gas revenues attributable to enhanced gas prices for conversion of Tal Block.

“The company did not book the previously un-booked retrospective impact of Rs3.39 billion related to the block. This was attributable to the Ministry of Energy (Petroleum Division) making amendments in Petroleum Policy 2012 imposing windfall levy on oil/condensate, which was previously not applicable,” the note said.

The company views that supplementary agreements were signed under conversion package on which windfall levy was not applicable and agreements cannot be changed unilaterally. “POL will challenge the imposition of windfall levy in the court of law.”

Net sales for the quarter ended December 31, 2017 stood at Rs6.23 billion, down 14.29 percent from net revenues of Rs7.26 billion in the corresponding period last year.

For the half-year ended December 31, 2017, Pakistan Oilfields posted a net profit of Rs4.78 billion translating into EPS of Rs20.16 compared with the profit of Rs4.76 billion and EPS of Rs20.07 in the corresponding period last year.

APL profit declines 6.9pc

Net profit for Attock Petroleum Limited (APL) fell 6.9 percent to Rs1.48 billion for the quarter ended December 31, 2017 translating into an EPS of Rs17.85, a bourse filing said.

APL’s net profit was Rs1.59 billion with an EPS of Rs19.21 in the previous quarter ended December 31, 2016, the notice said. The company also declared an interim cash dividend of Rs15/share along with the corporate announcement.

Analyst Ovais Hussaind at Elixir Securities said, “The company’s strong profitability was buoyed by high inventory gains emanating from rising international oil prices. The same is also indicative from high gross margins of 6.42 percent.”

Net sales for the quarter ended December 31, 2017 stood at Rs37.814 billion, up 26 percent from net revenues of Rs29.99 billion in the corresponding period last year.

Analyst Arslan Hanif at Arif Habib Limited said, “Despite substantial decline in furnace oil off-take, the sales surged on account of higher product prices along with volumetric growth in motor gasoline and high-speed diesel sales.”

For the half-year ended December 31, 2017, Attock Petroleum posted a net profit of Rs2.81 billion translating into EPS of Rs33.88 compared with the profit of Rs3.15 billion and EPS of Rs38.06 in the corresponding period last year.

ICI H1 profit down 5pc

ICI Pakistan Limited net profit declined 5.0 percent to Rs1.463 billion for the half-year ended December 31, 2017 with an EPS of Rs15.84, a notice to the PSX said.

“This is mainly due to a higher exchange loss of Rs238 million caused by the devaluation of the Pakistani rupee, coupled with lower dividend from the company’s subsidiary and associate,” a statement said. Net turnover for the six month period under review, at Rs23.177 billion, increased by 18 percent, as all businesses continued along their growth trajectory. The polyester and life sciences businesses were the major contributors, with growth of 24 percent and 32 percent respectively.

“Alongside the sound performance of the businesses for the half year, a number of projects are currently underway, demonstrating the company’s growth aspirations,” the statement added.

In the soda ash business, phase one of a capacity expansion project is in its final stages. Post commissioning, an additional 75,000 tons/annum will be added to the existing capacity of 350,000 tons/annum of the soda ash plant.