POL’s profit rises 9% to Rs3.88 billion

It comes due to reduction in expenses of company

KARACHI: Pakistan Oilfields Limited (POL) posted a 9% higher consolidated profit at Rs3.88 billion for the quarter ended September 30, 2019, due to a notable fall in expenses, particularly the exploration and finance costs.

The state-owned oil and gas exploration firm had registered a profit of Rs3.57 billion in the same quarter of the previous year, according to a company notification sent to the Pakistan Stock Exchange (PSX) on Tuesday. Earnings per share improved to Rs13.68 in the Jul-Sept 2019 quarter compared to Rs12.57 in the corresponding quarter of the previous year.

POL’s share price dropped 2.08%, or Rs8.13, to Rs383.47 with trading in 158,400 shares at the PSX. The company managed to post a higher profit despite the contraction in net sales by around 3% to Rs10.43 billion compared to Rs10.79 billion last year.

The decrease in sales came mainly due to a “drop in oil and gas production by 5% and 3% on a year-on-year basis respectively and fall in average realised oil prices by 18% on a year-on-year basis,” Arif Habib Limited said in post-result comments.

Furthermore, 21% depreciation of the rupee against the US dollar on a year-on-year basis during the quarter also impacted the sales.

Exploration cost fell to Rs375.83 million compared to Rs731.26 million last year. “This massive decline came amid the absence of a dry well during the quarter against a dry well (Mamikhel Deep-1) found in the same period of last year,” the brokerage house said.

Published in The Express Tribune, October 16^th, 2019.

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