Corporate results: POL earns Rs2 billion in third quarter

Profit rises 67% from the second quarter.

KARACHI: Pakistan Oilfields Limited (POL) on Monday announced earnings of Rs2 billion in the third quarter of financial year 2014-15 (EPS Rs8.5) against Rs1.2 billion (EPS Rs5) in the second quarter, up around 67%.

“The result is slightly on the higher side as compared to consensus estimates of market analysts,” said Topline Securities in a research report.

Net sales of POL dropped 20% quarter-on-quarter to Rs6.5 billion in the January-March quarter because of a 7% decline in the price of Arab Light crude – the benchmark for local exploration and production companies.

Oil volumes fell 9.4% compared to the second quarter while gas volumes dipped 8.5%.

Negligible exploration cost of Rs17.5 million booked in the third quarter versus Rs2.8 billion (dry well booked) in the second quarter provided considerable support to the company’s bottom-line, commented the research house.

In nine months (July to March), the company posted a profit of Rs7.4 billion (EPS Rs31.1), down 27% from Rs10.1 billion (EPS Rs42.7) in the same period of previous year.

Net sales fell 7% to Rs24.4 billion in nine months versus Rs26.2 billion in the corresponding period of last year.

In the period, POL’s oil production grew 10% while gas output declined 11%.

Exploration cost stood at Rs3.1 billion against Rs1.4 billion in the previous year, denting the company’s bottom-line. The surge in exploration cost came as a result of Rs2.8 billion dry well cost incurred in the second quarter.

Published in The Express Tribune, April 14^th,  2015.

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