August 26, 2020 (MLN): Pakistan Oilfields Limited has unveiled its financial performance for the year ended June 30th, 2020 as per which company posted net profits after tax at Rs 14.56 billion compared to Rs 13.28 billion last year, showing an increase of 9.6% YoY.
This has reflected in company’s earnings per share which also grew by the same percent from Rs 46.77 to Rs 51.23.
Alongside financial results, the company also announced a final cash dividend of Rs 30 per share for the year i.e. around 300%. This was in addition to the interim dividends already paid at Rs 20 per share i.e. 200%.
During FY20, the decline gas production by 4% YoY owing to drop in gas production from Tal bBock amid lower demand from refineries during Covid-19 lockdowns, and the decline in Oil production by 10% YoY on account of lower production from Tal Block and Adhi field kept the company’s profitability in check.
While the lower operating cost which declined by 8.65% YoY and Exploration cost which also reduced considerably by 31.41 % YoY, led the company to maintain gross margins at 52%.
Furthermore, owing to lower exchange gains during the period, POL’s Other income declined by 33.8% YoY to Rs 4.476 billion from Rs 6.76 billion. Moreover, finance cost has also been declined by 41.4% YoY due to lower provision of decommissioning cost.
Additionally, effective taxation has been lowered to 26%in FY20 as compared to 36% in FY19.
|
Consolidated Financial Results for the Year ended June 30, 2020 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-20 |
Jun-19 |
% Change |
|
Sales |
42,911,975 |
48,519,254 |
-11.56% |
|
Sales tax |
(3,526,193) |
(3,680,305) |
-4.19% |
|
Net Sales |
39,385,782 |
44,838,949 |
-12.16% |
|
Operating costs |
(10,258,665) |
(11,230,564) |
-8.65% |
|
Excise duty |
(279,055) |
(309,251) |
-9.76% |
|
Royalty |
(4,010,063) |
(4,553,641) |
-11.94% |
|
Amortization of development and decommissioning costs |
(2,409,826) |
(3,311,549) |
-27.23% |
|
|
|
|
|
|
Gross Profit |
22,428,173 |
25,433,944 |
-11.82% |
|
Exploration cost |
(1,405,418) |
(2,048,986) |
-31.41% |
|
Administrative expenses |
(216,084) |
(202,744) |
6.58% |
|
Finance cost |
(2,211,654) |
(3,773,657) |
-41.39% |
|
Other charges |
(1,387,916) |
(1,729,078) |
-19.73% |
|
|
|
|
|
|
Other income |
4,476,037 |
6,762,805 |
-33.81% |
|
Share in (loss)/profits of associated companies – net of impairment loss |
(939,262) |
(1,890,241) |
-50.31% |
|
Impairment/ reversal impairment on Investment in associated company |
(1,130,160) |
(1,913,703) |
-40.94% |
|
Profit before taxation |
19,613,716 |
20,638,340 |
-4.96% |
|
Provision for taxation |
(5,048,933) |
(7,356,828) |
-31.37% |
|
Profit after taxation |
14,564,783 |
13,281,512 |
9.66% |
|
Earnings per share – basic and diluted (Rupees) |
51.23 |
46.77 |
9.54% |
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