In Focus: Pakistan Oilfields Limited (21112008)

Being a pioneer in exploration and production of oil and gas sector in the region, currently holds 12 percent total recoverable oil reserves of the country and contribute 9 percent total oil production of the country. Going forward, TAL block and Pindori may lead higher reserves further, aggressive exploration stance for the enhancement of reserves is also on the way by the company.
Company had marked substantial growth of 19.6 percent in 1Q09
POL posted enormous growth of 19.6 percent in bottom line profitability in 1Q09 results as after tax profit witnessed Rs2.26bn against Rs1.89bn in corresponding period last year resulting an EPS of Rs11.47 VS EPS of Rs9.59. This substantial growth in bottom line earning was mainly supported by massive increase in oil and gas prices along with depreciation of Pak rupees against USD during the quarter over same period last year.
Top line grows by 30.7 percent to Rs4.87bn
Top line of the company has increased to Rs4.87bn from Rs3.73bn marked in corresponding period last year, depicting astonishing year on year growth of 30.7 percent, which was primarily due to higher oil and gas. During 1Q09 company had realised 95.9 and 38.2 percent higher oil and gas prices respectively over corresponding period last year.
Oil and gas production declined during 1Q09
While during the period under review production numbers of the company remain depressed as oil and gas production of the company declined by 25.4 and 14.6 percent respectively over the same period last year, mainly due to substantial decline from Pindori and Pariwali during the quarter. Further, Pindori oil production declined to about 1,500bpd from last year average of 3,000bpd.
Dividend income
would by realised in 2nd quarter
During the quarter company had not realised dividend income of Rs481mn which was announced by NRL and APL in their end june-08 results, due to the reason ex-date of both companies arrives in the second quarter. It would be realised in second quarter FY09.
Aggressive exploration activities
During the period under review company has shown aggressive stance towards exploration front and carried out exploration activities in 4 blocks namely, Kirthar South, TAL, Ikhlas and Margala & Margala Norths blocks activities are under progress.