POL’s profit surges 13.5% amid rupee fall

Company earns Rs13.3b, declares dividend of Rs30 per share

KARACHI: Pakistan Oilfields’ profit jumped 13.5% to Rs13.3 billion in the year ended June 30, 2019 amid depreciation of the rupee against the US dollar.

The company’s earnings had been recorded at Rs11.7 billion in the previous year, according to a notice sent to the Pakistan Stock Exchange (PSX) on Monday.

Earnings per share of the company stood at Rs46.77, up from Rs41.15 in the previous year. The board of directors announced a final cash dividend of Rs30 per share. It was in addition to the already-paid interim dividend of Rs20 per share. Net sales of the company surged 34% to Rs44.8 billion in FY19 from Rs33.4 billion in the previous year. The increase came on the back of a low base effect since the company had booked revenue reversal in the case of Tal block due to the windfall levy imposed in FY18, and 7% year-on-year higher realised oil prices.

Meanwhile, the oil and gas production each recorded a decline of 2% year-on-year along with 5% drop in average realised oil prices, stated AHL Research in its report.

Exploration cost remained on the lower side at Rs2.05 billion amid no dry wells reported in the fourth quarter compared to a dry well (Tolanj East) and the irrecoverable cost associated with Joyamair Deep-1 in 4QFY18, it added.

On the other hand, other income jumped a massive 161% to Rs6.76 billion in the period under review due to exchange rate gains. Finance cost also increased from Rs1.92 billion in the previous year to Rs3.8 billion in FY19.

Published in The Express Tribune, July 30^th, 2019.

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