Pakistan Oilfields Limited (POL) announced its results for the second quarter of FY 2020-21.
The company registered a decline of 34 percent in its profit to Rs. 3.2 billion for the quarter, compared to Rs. 4.56 billion in the corresponding period last year. This took the half year’s results to Rs. 6.64 billion, down by 22.45 percent compared to Rs. 8.56 billion recorded in the same period last year.
The company also announced an interim cash dividend of Rs. 20 per share for the second quarter.
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The drop in profitability was due to higher than the expected tax rate of 39 percent, said Topline Securities in a report.
The net sales of the company dropped by 23 percent to Rs. 8.77 billion compared to Rs. 11.46 billion in the same period last year due to the decline in hydrocarbon production by 6 percent to 2.16 million barrels of oil equivalent per day (boe) in the second quarter. Arab light crude oil price during the quarter also fell by 33 percent year-on-year to US$43.7/barrel.
According to Topline Securities, the operating expenditures during the outgoing quarter clocked in at US$6.2/boe, 5 percent lower than the last five quarters average of US$6.5/boe.
Exploration costs remained muted at Rs. 34 million, down by 92 percent compared to Rs. 415 million due to the limited exploratory and prospecting expenditures.
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The finance cost of the company witnessed a reversal of Rs. 188 million, due to the recognition of exchange of gain on foreign currency liabilities, said Topline Securities in its report. The company has also recognized exchange loss in the other income as it was down by 66% to Rs. 242 million compared to Rs. 707 million in the corresponding period.
Earnings per share of the company were reported at Rs. 10.64 compared to Rs. 16.07 during the quarter.
At the time of filing this report, POL’s shares at the bourse were trading at Rs. 418, up by Rs. 3.95 or 0.95 percent, with a turnover of 144,780 shares on Wednesday.
