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. STOCK IMAGE
“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 14th, 2015.
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