Profit, production and sales jump
Net profit of Pakistan Oilfields Limited surges 32 per cent to Rs7.4 billion in fiscal year 2009-10.
KARACHI:
Net profit of Pakistan Oilfields Limited (POL) surged 32 per cent to Rs7.4 billion in fiscal year 2009-10 on the back of higher gas production, jump in oil prices and lower exploration expenses.
The company also announced a final cash dividend of Rs17.5 (175 per cent) per share, taking full-year payout to Rs25.5 per share, according to a communique sent to the stock exchange on Friday.
Healthy payout points towards better liquidity position compared with its peers, Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL), which had to cut the payouts to 43 per cent and 38 per cent, respectively, according to IGI Securities.
The net profit was 5 per cent lower than expected as consensus of four research firms revealed the bottom-line to be in the range of Rs7.8 to Rs7.9 billion.
Thrust from net sales
The growth in earnings is primarily attributed to a massive 62 per cent growth in total gas flows and 12 per cent jump in oil production in fiscal year 2010, which led to a 27 per cent rise in the company’s net sales, according to analysts. Net sales stood at Rs17.8 billion during the period against last year’s Rs14 billion.
Manzalai field, one of the largest additions in recent years, commenced operations in October 2009.
POL with its relatively lower production compared with its peers gained the most as the company’s gas production shot up 62.3 per cent.
Similarly, provisional numbers for oil production indicate POL produced 4.1 thousand barrels per day (kbpd), 11 per cent increase on a yearly basis, said BMA Capital analyst Hammad Aslam.
Crude prices averaged at $75 per barrel during fiscal year 2010, up 9 per cent from 2009 average while the rupee clocked in at an average of 84 against the dollar, up 7 per cent from last year.
Operating expenditures soared by 16 per cent to stand at Rs4.1 billion while exploration cost declined 21 per cent to Rs1.61 billion, mainly on the back of lower cost of dry wells and lesser seismic expenditures in FY10.
Other income fell by 32 per cent to Rs1.38 billion due to lower bank deposits, decline in dividends from subsidiaries and absence of exchange gains.
One of a kind production
Backed by the upcoming production initiation from Maramzai and Mamikhel fields of Tal blocks, POL is currently the only company in the exploration and production sector that is estimated to deliver double-digit production growth during fiscal year 2011 to 2013, said BMA Capital analyst Hammad Aslam.
Yet the stock currently trades as the cheapest amongst its peers, added Aslam.
Published in The Express Tribune, October 2nd, 2010.
Net profit of Pakistan Oilfields Limited (POL) surged 32 per cent to Rs7.4 billion in fiscal year 2009-10 on the back of higher gas production, jump in oil prices and lower exploration expenses.
The company also announced a final cash dividend of Rs17.5 (175 per cent) per share, taking full-year payout to Rs25.5 per share, according to a communique sent to the stock exchange on Friday.
Healthy payout points towards better liquidity position compared with its peers, Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL), which had to cut the payouts to 43 per cent and 38 per cent, respectively, according to IGI Securities.
The net profit was 5 per cent lower than expected as consensus of four research firms revealed the bottom-line to be in the range of Rs7.8 to Rs7.9 billion.
Thrust from net sales
The growth in earnings is primarily attributed to a massive 62 per cent growth in total gas flows and 12 per cent jump in oil production in fiscal year 2010, which led to a 27 per cent rise in the company’s net sales, according to analysts. Net sales stood at Rs17.8 billion during the period against last year’s Rs14 billion.
Manzalai field, one of the largest additions in recent years, commenced operations in October 2009.
POL with its relatively lower production compared with its peers gained the most as the company’s gas production shot up 62.3 per cent.
Similarly, provisional numbers for oil production indicate POL produced 4.1 thousand barrels per day (kbpd), 11 per cent increase on a yearly basis, said BMA Capital analyst Hammad Aslam.
Crude prices averaged at $75 per barrel during fiscal year 2010, up 9 per cent from 2009 average while the rupee clocked in at an average of 84 against the dollar, up 7 per cent from last year.
Operating expenditures soared by 16 per cent to stand at Rs4.1 billion while exploration cost declined 21 per cent to Rs1.61 billion, mainly on the back of lower cost of dry wells and lesser seismic expenditures in FY10.
Other income fell by 32 per cent to Rs1.38 billion due to lower bank deposits, decline in dividends from subsidiaries and absence of exchange gains.
One of a kind production
Backed by the upcoming production initiation from Maramzai and Mamikhel fields of Tal blocks, POL is currently the only company in the exploration and production sector that is estimated to deliver double-digit production growth during fiscal year 2011 to 2013, said BMA Capital analyst Hammad Aslam.
Yet the stock currently trades as the cheapest amongst its peers, added Aslam.
Published in The Express Tribune, October 2nd, 2010.