Pakistan Oilfields Limited’s (POL) unconsolidated profit increased 10.71% to Rs 3.10 billion, in the quarter that ended in March 2018, on the back of higher Arab Light oil prices, increased hydrocarbon production and currency devaluation.
The oil and gas exploration and production company had registered a profit of Rs 2.80 billion in the corresponding period (Jan-Mar) of the previous year.
Earnings per share rose to Rs 13.13 as compared to Rs 11.88 in the corresponding quarter of the previous year.
Topline of the company jumped up by 15% YoY and 46% QoQ to Rs 8.7 billion during Q3FY18, attributable to an increase in Oil and Gas production by 7% and 12% YoY, respectively.
Furthermore, Pakistani Rupee depreciated sharply by 6% YoY while average oil prices increased by 24% YoY from USD 52.93/bbl to USD 65.64/bbl, which ultimately went in favor of the company’s revenue.
Net sales surged 14.85% to Rs 7.41 billion in the Jan-Mar quarter from Rs 7.61 billion in the corresponding quarter of previous year.
Other income in Q3 witnessed a significant increase from Rs 312 million in the same period last year to Rs 741 million.
During Q3, operating costs rose by 6% YoY whereas exploration costs escalated by 12% YoY. Despite 19% YoY decline in oil production from Makori Deep (44% of POL’s total oil production), POL’s total oil production was up 8%.
POL’s gas production recorded around 12% YoY growth in Q3 mainly supported by additional flow from Jhandial well and increased flow from Maramzai.
The company also announced results for the nine months period ending 31 March 2018 reporting sales worth Rs. 23.65 billion. Meanwhile, the company reported bottom line profit worth Rs. 7.86 billion against Rs 7.46 billion in 2017 which was up by 5.39%.
The net sales during the period went up by 7.69% reaching Rs 21.98 billion, with operating costs increasing by more than 14.5% reaching Rs 229.37 million.
On the expenses account, POL registered a marked reduction in company’s Administrative Expenses down 98.53% with a 132% jump in exploration costs for the period.
Amongst other major accounts, other income rose by 83% coupled with a 108% jump in financing costs.
POL’s script at the PSX closed at Rs 692.87, down 0.46% with a turnover of 0.12 million shares as the overall oil and gas production sector was down because of the ongoing tensions between US and Syria.