PHOTO: REUTERS
KARACHI: Pakistan Oilfields Limited’s (POL) consolidated profit surged 30% to Rs7.58 billion for nine months ended March 31, 2017 on the back of higher sales and lower costs in the exploration of new oil and gas deposits in the country, according to a bourse filing on Monday.
The company had booked a profit of Rs5.82 billion in the same nine-month period of previous fiscal year.
Earnings per share (EPS) increased to Rs31.93 in Jul-Mar 2016-17 from Rs24.50 in the same period of previous year.
Stock price of the company rose Rs6.53 or 1.42% to Rs465.24 with a volume of 180,200 shares at the Pakistan Stock Exchange.
According to the company’s profit and loss account, net sales increased 9% to Rs20.91 billion in Jul-Mar FY17 from Rs19.13 billion in the same period of last year. Exploration costs dropped three times to Rs436.68 million from Rs1.27 billion.
A major reason for the significant reduction in the cost was that during exploration work, no well was found dry, according to Taurus Securities.
An uptick in the benchmark Arab Light crude oil’s price also helped the company achieve higher net sales during the period under review. Additionally, finance cost dropped to Rs585.21 million from Rs837.55 million and other income fell to Rs617.49 million from Rs910.73 million.
In the third quarter (Jan-Mar) alone, POL booked a consolidated profit of Rs2.81 billion (EPS Rs11.86), which was 32% higher than Rs2.13 billion (EPS Rs9) in the same quarter of previous year.
According to Topline Securities, the company registered “a stellar consolidated net sales growth of 20% thanks to higher Arab Light crude prices, up 77% to $52.5 per barrel, and improved hydrocarbon production where oil production was up 14% and gas production was up 9%”.
Oil sales increased to average 7,500 barrels per day due to 16% growth in Adhi field (12% of POL’s total oil volumes) and increase in production from Mardan Khel field (14% of POL’s total oil volumes). Gas volumes came in at average 84 million cubic feet per day, up 9% mainly due to addition from the Mardan Khel field, it said.
Published in The Express Tribune, April 18th, 2017.
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