Pakistan Oilfields' earnings swell 35%

Sales remain robust, other income picks up

KARACHI: Pakistan Oilfields Limited's (POL) consolidated profit surged 35% to Rs3.57 billion in the quarter ended September 30, 2018 mainly due to robust sales and uptick in income from other than core business, according to a notice sent to the Pakistan Stock Exchange (PSX) on Friday.



The oil and gas exploration firm had recorded a profit of Rs2.64 billion in the same quarter last year, according to the profit or loss account of the company sent to the bourse.

Earnings per share surged to Rs12.57 in the Jul-Sept 2018 quarter compared to Rs9.28 in the corresponding period of previous year. Net sales soared 46% to Rs10.79 billion compared to Rs7.41 billion last year.

Topline Securities' analyst Nabeel Khursheed said sales surged due to 50% increase in the benchmark Arab Light crude price year-on-year, rupee depreciation and higher hydrocarbon production.

"Hydrocarbon production of the company showed up to 5% year-on-year growth in the quarter under review mainly on the back of increase in gas volumes…from Maramzai and additional flow from Jhandial field," he said.

Besides, other income increased almost three-fold to Rs694.76 million in Jul-Sept 2018 compared to Rs248.60 million in the corresponding quarter of previous year.

The company reported a notably higher profit despite a significant increase in operating cost, royalty payment, finance costs, exploration costs and the loss booked by associated companies against profit in the same quarter last year.

Operating cost increased 41% to Rs2.99 billion whereas royalty payment soared 64% to Rs1.08 billion. Finance cost doubled to Rs401.74 million and exploration cost surged around three-fold to Rs731.26 million.

Financial cost was up mainly on the back of exchange losses due to rupee depreciation, the analyst added.



The firm booked a loss of Rs156.89 million from associated companies in the Jul-Sept 2018 quarter compared to a profit of Rs94.24 million in the same quarter last year.

This came mainly due to the Rs1.1 billion loss posted by its associate National Refinery. POL's other associate Attock Petroleum reported a profit of Rs1.5 billion in 1QFY19.

Published in The Express Tribune, October 13^th, 2018.

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