POL's profit jumps by 18% YoY to Rs10bn in 1QFY24

October 10, 2023 (MLN): Pakistan Oilfields Limited (PSX: POL) 's profitability increased by 17.85% YoY, clocking in its profit after tax at Rs10.01 billion [EPS: 35.21] in 1QFY24, compared to the profit of Rs8.49bn reported in the Same Period Last Year (SPLY), POL'S filing on PSX revealed today.

Going by the results, the company's top line increased by 4.05% YoY to Rs17.02bn as compared to Rs16.36bn in SPLY.

The cost of sales also went up by 6.19% YoY but was lesser than proportionate to the sales increase, which improved the gross profit by 3.18% YoY to Rs11.99bn in 1QFY24.

On the expense side, the company observed a decrease in its exploration costs by 84.11% YoY and administrative expenses by 5.85% YoY to clock in at Rs719.19m and Rs125.31m respectively during the review period.

Conversely, POL's other expenses saw growth of 84.36% YoY to Rs910.98m during the respective period.

Moreover, the company incurred an impairment expense of Rs800.68m on its investment in an associated company in 1QFY24, compared to a reversal of impairment worth Rs1.1bn incurred in 1QFY23.

The company's profitability was also supported by the inflow of profits from associated companies, which clocked in at Rs1.17bn in 1QFY24, compared to a loss of Rs794.87m in the SPLY.

During the period under review, other income decreased by 23.81% YoY to stand at Rs4.9bn in 1QFY24 as compared to Rs6.43bn in SPLY.

The company’s finance costs contracted by 55.07% YoY and stood at Rs1.27bn as compared to Rs2.84bn in 1QFY22, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs4.22bn against the Rs1.87bn paid in the corresponding period of last year, depicting a rise of 2.26x YoY.

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