Pakistan Oil Fields Reports a Profit of Rs. 14.56 Billion in FY20

Pakistan Oilfields Limited has announced its consolidated financial results for FY20.

The company has reported a profit of Rs. 14.56 billion, up by 9.64% as compared with a profit of Rs. 13.28 billion in the previous year.

The result was also accompanied with a cash dividend of Rs. 30.0/share, cumulating into a full-year payout of Rs. 50.0/share.

Consequently, the sales of the company declined by 12.20% to Rs. 39.106 billion in FY20 compared to Rs. 44.529 billion in FY19. This was due to the decline in international crude oil prices and the drop in the production of oil and gas. However, higher dollar indexation likely provided some support to profitability.

Brokerage Arif Habib Limited in its research note attributed it to declines in off-take during the fourth quarter because of substantial fall in realized oil prices due to the weak demand of oil globally, and a drop in oil and gas production.

Other income of the company also took a hit of 51% in the fiscal, which was down to Rs. 4.476 billion in FY20 compared to Rs. 6.763 billion in Fy19 due to lower exchange gain realized in the fourth quarter. The exploration cost clocked in at Rs. 1.40 billion as compared with Rs. 2.04 billion in the previous year.

The finance cost of the company was down by 41.40% to Rs. 2.21 billion from Rs. 3.77 billion. The share of loss from the associated companies was down to Rs. 939 million from Rs. 1.89 billion.

Earnings per share of the company were reported at Rs. 51.23 as compared with Rs. 46.77 in FY19.