Pakistan Oilfields Half-Year Profit Surges 22% to Rs. 17.6 Billion

Pakistan Oilfields Limited (POL) on Tuesday announced its financial results for the six months ended December 31, 2023, posting a profit after tax of Rs. 17,579 million. During 1HFY24, the company’s profit after tax rose by 22 percent compared to profit after tax of Rs. 14,353 million posed in the same period of the previous fiscal year. The company’s earnings per share during 1HFY24 came in at Rs. 61.93 compared to Rs. 50.57 during 1HFY23. On a quarterly basis, earnings during 2QFY24 settled at Rs. 7,871 million, up by 32 percent on a year-on-year (YoY) basis. Alongside the result, the company announced an interim cash dividend of Rs.  25.00 per share in 2QFY24. The earnings per share during the quarter stood at Rs. 27.73. Topline in 1HFY24 witnessed a growth of 13 percent YoY, clocking in at Rs. 34,046 million compared to Rs. 29,998 million during the same period of last year (SPLY). The net sales in 2QFY24 arrived at Rs. 17,364 million, showcasing a jump of 24 percent YoY on the back of Pakistani Rupee depreciation against the greenback. Whereas, realized oil price plummeted by 1 percent YoY while oil and gas production reduced by 5 percent and 3 percent YoY, respectively, according to Arif Habib Ltd. The exploration costs plummeted by 79 percent YoY in 1HFY24, arriving at Rs. 1,133 million, owing to the absence of a dry well during the period. Meanwhile, the exploration costs during 2QFY24 reached Rs. 414 million, down by 57 percent YoY due to the aforementioned reason. The other income registered a decline of 11 percent YoY, settling at Rs. 7,773 million during 1HFY24 on account of exchange loss on foreign currency compared to exchange gains in SPLY. Whereas, other income during 2QFY24 arrived at Rs. 2,881 million, up 37 percent YoY given higher income from cash and cash equivalents. The company’s effective taxation arrived at 30 percent in 2QFY24 compared to 36 percent in 2QFY23.