POL profit gushes to around Rs6bn in 1QFY26

MG News | October 28, 2025 at 02:59 PM GMT+05:00

0:00

October 28, 2025 (MLN): Pakistan Oilfields Limited (POL) has reported a remarkable surge in profitability, with its Profit After Tax (PAT) soaring over 119% YoY to Rs5.89 billion for the quarter ended September 30, 2025, compared to Rs2.69bn in the same period last year, according to the company’s unaudited condensed interim consolidated financial statements.

Earnings Per Share (EPS) of POL soared to Rs20.74 for the quarter, up sharply from Rs9.47 reported previously.

The most striking change in the income statement was the dramatic reduction in Exploration Costs.

These costs plummeted from Rs7.74bn in the previous year to just Rs1.13bn in the current quarter.

A major reduction in exploration expenses typically indicates the absence of high-cost activity like drilling dry wells that occurred in the comparative period.

Despite a decline in overall net sales from Rs15.82bn to Rs13.42bn, the massive reduction in exploration costs allowed the company to significantly improve its final operating result.

The quarter also benefited from a substantial increase in Other Income - net, which rose from Rs3.74bn to Rs1.87bn.

Additionally, the previous year's figures included a significant item of Reversal of impairment on investment in the associated company of Rs1.81bn, an item that was absent in the current period's results.

Gross Profit Margin remained stable, showing a very slight decrease from 63.86% to 63.53%.

This indicates the company's core production and direct operating efficiency remained largely consistent despite a lower volume of Net Sales in 2025.

Net Profit Margin saw a dramatic increase, more than doubling from 17.04% to 43.93%.

This massive improvement is primarily due to the sharp drop in Exploration Costs in the 2025 quarter (Rs1.13bn) compared to the 2024 quarter (Rs7.74bn), as highlighted in the previous analysis.

Statement of the Profit/Loss for the period of the quarter ended on September 30, 2025 (Rupees '000)
	2025	2024	Change
SALES	14,661,024	17,306,504	-15.29
Sales tax	-1,201,907	-1,427,050	-15.78
Excise duty	-40,032	-58,878	-32.01
NET SALES	13,419,085	15,820,576	-15.18
Operating costs	-3,443,112	-4,003,961	-14.01
Royalty	-1,450,430	-1,713,872	-15.37
	-4,893,542	-5,717,833	-14.42
GROSS PROFIT	8,525,543	10,102,743	-15.61
Exploration costs	-1,126,414	-7,735,350	-85.44
	7,399,129	2,367,393	212.54
Administration expenses	-134,423	-124,852	7.67
Finance costs - net	-529,880	-940,134	-43.64
Other charges	-476,873	-337,681	41.22
	-1,141,176	-1,402,667	-18.64
	6,257,953	964,726	548.68
Other income - net	1,872,212	3,739,819	-49.94
	8,130,165	4,704,545	72.82
Share in profits /(loss) profits of associated companies	527,380	-1,637,462	-
Reversal of impairment / (impairment) on investment in associated company	-	1,809,146	-
PROFIT BEFORE INCOME TAX AND FINAL TAXES	8,657,545	4,876,229	77.55
Final taxes - levies	-212,625	-471,778	-54.93
PROFIT BEFORE INCOME TAX	8,444,920	4,404,451	91.74
Provision for taxation	-2,550,315	-1,708,824	49.24
PROFIT FOR THE PERIOD	5,894,605	2,695,627	118.67
Earnings per share attributable to owners of POL - Basic and diluted (Rupees)	20.74	9.47	119.01

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