Corporate results: POL improves earnings

Higher oil production boosts revenue.

KARACHI: Pakistan Oilfields Limited (POL) reported a profit of Rs6.9 billion, higher by 22%, as it reaped the benefit of a rise in oil output. Rupee depreciation and better oil prices also worked in its favour.

The company announced an interim cash dividend of Rs20 per share.

According to Global Research, POL’s oil production was higher by 31% at 1.01 million barrels compared to 0.77 million during the corresponding period the previous year.

Growth has been led by POL’s non- operated fields Maramzai, Mamikhel and Makori East. “POL’s gas flows are also marginally higher in the first-half fiscal 2014, mainly due to enhanced production from Makori East, despite a steady decline in production from Manzalai,” it said.

The company’s amortisation and decommissioning costs remained high for the second consecutive quarter at Rs1.007 billion during October-December 2013 quarter, it said, adding that in previous fiscal year the quarterly average remained at Rs450 million.

“We believe that this is likely due to a decline in the reserve life of the currently producing assets mainly the Manzalai field.”

Operating costs of the company rose by 10% to Rs3.814 million mainly because of work on wells and higher operating expenditure on other fields.

Published in The Express Tribune, January 23^rd, 2014.

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