Corporate results: Pakistan Oilfields’ profit down 31%

Company reports Rs3.67b in earnings during six-month period

KARACHI: Amid declining revenues, Pakistan Oilfields Limited (POL) saw its earnings decrease by nearly one-third in July-December period of 2015, according to a notice sent to the Pakistan Stock Exchange on Wednesday.

The company reported a net profit of Rs3.67 billion, Rs15.5 per share during six-month period ended December 31, 2015, down 31% compared to Rs5.34 billion or Rs22.6 per share it earned in the comparable period of 2015.



However, the result was better than street consensus, according to market analysts.

“They have booked lower than expected exploration costs and effective tax rate during the latest quarter, which is why the result was above expectations,” Taurus Securities’ Head of Research Zeeshan Afzal said.

The stock, which traded at Rs225.86 per share the last day, ended Rs1.90 per share or 0.84% higher to settle at Rs227.76 at the close of market on Wednesday with more than 3 million shares changing hands - the company’s highest turnover for the month.

The result announcement was accompanied with an interim cash dividend of Rs15 per share for the six-month period ending December 31, 2015.

“The notable decline in earnings can primarily be attributed to 32% year-on-year (YoY) decline in revenues,” BMA Capital said. The decline in revenue was on account of 49% YoY decrease in the prices of Arab light crude and an expected 5% YoY decline in oil production, it added. “On the flip side, 16% YoY higher other income and 61% YoY lower exploration expenditure provided some support to the bottom line.”

On a sequential basis, the report said the second quarter of fiscal year 2016 earnings grew 61% to Rs9.6 per share owing to 12% increase in oil production - courtesy recovery in production from Makori East and lower exploration expenditure amid absence of dry well write-off.

Published in The Express Tribune, February 11^th,  2016.

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