POL’s profit up 35 percent in 1Q

KARACHI: Profit of Pakistan Oilfields Limited (POL) rose 35 percent to Rs3.571 billion for the first quarter ended September 30, translating into earnings per share (EPS) of Rs12.57, a bourse filing said on Friday.

POL earned Rs2.642 billion with EPS of Rs9.28 during the same quarter a year earlier, a statement to the Pakistan Stock Exchange said. The company didn’t announce cash dividend.

Analyst Nabeel Khursheed at Topline Securities said POL’s revenue increased 46 percent year-on-year on a 50 percent increase in Arab light oil prices, currency devaluation and increased hydrocarbon production.

Hydrocarbon production of the company recorded up to five percent growth in 1QFY19 mainly on increase in gas volumes. Gas production was up on the back of higher gas flow from Maramzai and additional flow from Jhandial field.

Quarterly financial charges jumped 133 percent year-on-year mainly due to exchange losses owing to currency devaluation.

POL booked loss of Rs157 million from associates in 1QFY19 mainly due to loss of Rs1.1bn posted by its associate National Refinery. The company’s other associate Attock Petroleum reported profit of Rs1.5 billion in 1QFY19.

“We flag inability to receive higher gas price incentive on TAL Block, lower than anticipated international oil prices, significant exploration and development cost and unexpected field shutdown as key risks,” Khursheed added.