Corporate results: Pakistan Oilfields profits beat expectation
Pakistan Oilfields’ net profit rose 55% to Rs3.45 billion during July to September 2011 primarily on account of surge in net sales.
The result was 20% more than analyst expectation as they, on average, expected it to stand around Rs2.9 billion.
Net sales of the third largest oil and gas explorer rose by 36% to Rs7.89 billion driven by surge in oil prices coupled with growth in oil production, said Topline Securities analyst Nauman Khan.
The company’s oil production inched up 7% to 4,750 barrels per day during the period under review on the back of increased flows from Tal block’s Manzalai and Domail-1. However, gas production remained stable at 87 million cubic feet per day.
Oil prices rose by 46% to average $108 per barrel in the first quarter of fiscal 2012 on a yearly basis.
Stable exploration cost and 58% rise in company’s other income on bank placements also supported growth in net profit, said.
Exploration costs surprisingly dropped 30% to Rs74 million against market expectation as analysts expected the oil and gas explorer to book dry well costs of Chak Naurang South-1.
The company managed to keep a lid on operating costs as they stayed in the same range at Rs1.35 billion according to a notice sent to the Karachi Stock Exchange.
Production enhancement from Makori of Tal block and better Arab light prices are expected to improve fiscal 2012 earnings, said Khan.
Moreover, positive flows from Domail-2 will remain a key trigger for the scrip in the near-term.
Published in The Express Tribune, October 20th, 2011.
COMMENTS (1)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
This is disappointing.You have extracted excerpts from a research note issued by IGI Securities, without quoting us!