POL posts 73.85% YoY surge in profits in FY22

August 16, 2022 (MLN): Pakistan Oilfields Limited (PSX: POL) has successfully wrapped up the financial year 2022 as it posted a remarkable surge of 73.85% in profitability to stand at Rs26.77 billion (EPS: RS94.28) compared to Rs15.40bn (EPS: 54.24) in FY21.

In conjunction with the results, the company also announced a final cash dividend for the year ended June 30, 2022, at Rs50 per share i.e., 500%. This is in addition to the interim dividend(s) already paid at Rs20 per share i.e., 200%.

Going by the financial result sent to PSX, the net sales of the company increased by 44.53% YoY to clock in at Rs53.25bn in FY22. 

The jump in net sales is primarily attributable to the higher crude oil prices, along with currency depreciation during the period, a report by AKD Securities noted. 

On the expense front, the company witnessed a notable increase in exploration cost which took it to Rs877mn in FY22, up by 77.45% compared to the same period last year. Meanwhile, the administrative expenses moved up by 6.94% in the review period to stand at Rs234.43mn.

The other major highlight was a share of the profit earned by associated companies that recorded a remarkable surge of 4.5x to Rs3.57bn.

Among other line items, the other income of the company climbed up by 7.4x YoY to Rs11.21bn which also boosted its bottom line.

On the other hand, the company faced an impairment loss of Rs1.97bn on investment during the period under review against the impairment reversal of Rs1.62bn in FY21.

In addition to it, the financial cost of the company stood at Rs5.54 in FY22 compared to Rs259mn in FY21. The jump in finance costs is attributed to the hike in the policy rate by SBP.

The company booked a tax expense of Rs11.35bn during FY22 against Rs23bn paid in FY21.

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