Corporate results: Pakistan Oilfields profits jump 19%

Net revenue rose 21% to Rs22 billion during July 2011 and March 2012.

KARACHI: Rs9.33 billion in the first nine months of fiscal 2012 with rising oil and gas prices acting as a blessing.

International oil prices, key determinant of local rates, have increased by an estimated 11% to $101 per barrel on a yearly basis. Similarly, price for gas is estimated to have increased by 13% to Rs290 per million cubic feet on a yearly basis.

This took the company’s net revenue up 21% to Rs22.0 billion during July 2011 and March 2012, according to a notice sent to the Karachi Stock Exchange.

Other income surged 71% amid higher payouts from its associate companies and improved cash position. Attock Group of Companies’ exploration wing booked dividend from National Refinery in the second quarter of the financial year.

Decline in exploration cost of 68% culminated from conservative exploration activity and announcement of no dry well helped bring down expenses.

Marginal increase in company’s oil and gas production, up approximately 4% and 3% respectively, on account of higher production from its non-operating Tal block compensated subdued production from its operating block.

However, earning growth was partially diluted due to increase in company’s amortisation and decommissioning cost. The company booked amortisation and decommissioning cost worth of Rs1.4 billion against Rs763 million last year.

The company reported the negative surprise in the previous quarter under ‘amortisation and decommissioning cost’, which is expected to persist going forward.

The company’s stock price crawled up 0.62% to Rs377.72 amid announcement of results in line with market expectations.

The stock has underperformed the benchmark stock index by 9% in 2012 owing to concerns of dry well findings in Domial and Dhulian Deep.

However, news flows from Dhulian Deep and Makori East-2 to act as near-term triggers for the stock.

Meanwhile, Attock Petroleum’s profits jumped 14% to Rs4.47 billion on the back of improved volumetric sales by 21% on a yearly basis.