Pakistan Oilfields ltd observes outstanding growth in profits amid higher realized oil price

January 22, 2019 (MLN): Pakistan Oilfields Limited (POL)’s quarterly consolidated profits have observed an upswing of 102% year-on-year, from a net income of Rs.2.14 billion in Dec-17 to Rs.4.33 billion at the end of the quarter that ended with Dec-18. (EPS: PKR 15.26).

Similarly, the company’s cumulative profits during the July – Dec period have risen to Rs.7.9 billion, up by 65% YoY, with EPS: PKR 27.83. Net margin for the period has inched up by 0.6% as it stands at 32.2%.

The improvement in POL’s performance seems to have come about as a result of higher average realized oil prices by 16% YoY, and 26% YoY Pak Rupee depreciation against USD.

Another reason for the growth is absence of one-off reversal, which results in a low base impact since the company booked revenue reversal of TAL block amid imposition of windfall levy in 2QFY18

POL’s topline earning in 1HFY19 swelled by 62% YoY while its gross profits (Rs.12.5 billion) observed a remarkable leap of 94% YoY.

After accounting for overall expenses including non-core charges (total: Rs.3.5 billion), which grew by a smaller margin of 85%, the net profit before tax logged in at Rs.12.1 billion.  

POL has recommended an interim Cash dividend of Rs. 20 per share. i.e 200%

Consolidated Financial Results for the half year ended December 31, 2019 ('000 Rupees)

 

Dec-18

Dec-17

% Change

Sales

                     24,566,924

                     15,148,638

62.17%

Sales tax

                     (1,877,358)

                     (1,504,551)

24.78%

Net Sales

                     22,689,566

                     13,644,087

66.30%

Operating costs

                     (5,958,836)

                     (4,481,538)

32.96%

Excise duty and development surcharge

                        (155,634)

                        (146,925)

5.93%

Royalty

                     (2,244,584)

                     (1,090,560)

105.82%

Amortization of development and decommissioning costs

                     (1,802,600)

                     (1,490,237)

20.96%

Gross Profit

                     12,527,912

                       6,434,827

94.69%

Exploration cost

                        (810,154)

                        (740,408)

9.42%

Administrative expenses

                        (118,135)

                           (99,700)

18.49%

Finance cost

                     (1,748,604)

                        (675,442)

158.88%

Other charges

                        (867,175)

                        (395,240)

119.40%

Other income

                       2,781,487

                           953,610

191.68%

Share in (loss)/profits of associated companies  – net of impairment loss

                           349,862

                           604,848

-42.16%

Profit before taxation

                     12,115,193

                       6,082,495

99.18%

Provision for taxation

                     (4,211,642)

                     (1,300,237)

223.91%

Profit after taxation

                       7,903,551

                       4,782,258

65.27%

Earnings per share – basic and diluted (Rupees)

                               27.83

                               16.80

65.65%

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Posted on: 2019-01-22T13:05:00+05:00

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