Pakistan Oilfields Limited’s Profits Remain Flat in H1 2017-18

Pakistan Oilfields Limited (POL) saw its earnings remain flat in July-December period of 2017, according to a notice sent to the Pakistan Stock Exchange on Wednesday.

The company reported a net profit of Rs 4.78 billion, up by a mere increase of 0.02% compared to Rs. 4.76 billion in the comparable period of 2017. It missed all expectations as the company reported a mere increase of 0.84% in sales during HY 2017 from the same period last year.

Earnings per share (EPS) increased to Rs. 20.13, up by 2.29% from an EPS of Rs. 19.68 in the period under review.

The result announcement was accompanied by an interim cash dividend of Rs. 17.50 per share for the six-month period ending December 31, 2015.

The net sales were flat as it was up by merely 3.40% as compared to last year. The gross profit was up by 4.52% with exploration costs going up by a massive 289.01% in this period.

POL’s script at the bourse today hit it’s lower lock at -5.00% at Rs. 596.79 after it missed the expected targets by miles in the financial report.

The company, in the official release, also informed the bourse of the Accounting rules that reversed sums worth Rs. 786 million for the accounting period falling between July 1, 2017, and December 31, 2017.

The adjustments were made due to the conversion of TAL Block Agreements from Petroleum Policy 1997 to Petroleum Policy 2012 for future and retrospective pricing. The company will challenge the imposition of WLO in the Court of Law.

The company further informed that the “entire revenue account of an enhanced gas price incentive of Rs. 6,404 million till December 31, 2017, related to the conversion of TAL Block from Petroleum Policy 1997 to Petroleum Policy 2012 will be accounted for upon resolution of this matter as per the accounting policy of the company.”

Pakistan Oilfields Limited engages in the exploration, drilling, and production of crude oil and natural gas in Pakistan. It operates nine development and production leases, such as Pariwali, Meyal, Joyamair, Minwal, Dhulian, Khaur, Pindori, Turkwal, and Balkassar.

The company also produces liquefied petroleum gas (LPG), solvent oil, and sulfur. In addition, it is involved in the marketing of LPG under the POLGAS brand.



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