POL’s profit falls 5% to Rs3.7b

Pakistan Oilfields Limited’s (POL) consolidated profit dropped almost 5% to Rs3.69 billion in the quarter ended September 30, 2020 mainly due to decrease in sales, according to a bourse filing on Tuesday.

The oil and gas exploration firm had registered a profit of Rs3.88 billion in the same quarter of last year, the company said in its statement of profit or loss sent to the Pakistan Stock Exchange (PSX) on Tuesday.

Its earnings per share fell to Rs13.05 in the quarter under review from Rs13.68 in the corresponding quarter of previous year.

Net sales of the firm declined over 9% to Rs9.40 billion compared to Rs10.36 billion last year.

“The result is higher than our expectation mainly on account of lower exploration expense booked by the company,” Sherman Research said in post-result comments. Exploration cost decreased fivefold to Rs76 million compared to Rs376 million due to the absence of dry wells.

POL’s share price increased Rs3.48, or 0.96%, to Rs366.61 with volume of 309,420 shares in a bullish session at the PSX. The drop in sales came mainly due to “lower oil prices, whereas oil and gas production during the quarter increased 6% and 3% on a year-on-year basis respectively,” the research house said, adding the increase in production helped the firm to limit the profit reduction.

On the flip side, operating expenses during the period under review increased to Rs2.54 billion from Rs2.43 billion last year, resulting in shrinking gross margins.

Other income dropped to Rs296 million compared to Rs399 million mainly due to lower exchange gains.

Attock Refinery

Attock Refinery reported a loss of Rs135 million in the quarter ended September 30, 2020 compared to profit of Rs335 million in the same quarter of last year.

It translated into loss per share of Rs1.27 compared to earnings per share of Rs3.15 last year.

National Refinery

National Refinery Limited’s losses doubled to Rs1.31 billion in the quarter ended September 30, 2020 from Rs679 million in the same quarter of previous year.

Accordingly, the loss per share rose to Rs16.40 from Rs8.49.

Published in The Express Tribune, October 21^st, 2020.

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