In Focus: Result Review of POL 1Q09 (11112008)

POL posted enormous year-on-year growth of 19.6 percent in bottom line profitability in its financial results for the 1Q09 as PAT witnessed an increase from Rs2.26bn to Rs1.89bn resulting an EPS of Rs11.47 against EPS of Rs9.59 in corresponding period last year. Mainly supported by massive increase in oil and gas prices during the quarter over same period last year.
Top line grows by 30.7 percent to Rs 4.87bn
Moreover, top line of the company has increased to Rs.4.87bn against Rs3.73bn marked in corresponding period last year, depicting astonishing growth of 30.7 percent on YoY basis. This 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.
However, oil and gas production declined
However, POL production numbers continue to remain depressed as oil and gas production of the company declined by 25.4 and 14.6 percent respectively during the period under review. This was 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 3,000 BPD. However, we expect average production of 2,000 BPD during FY09 and production will further improve in coming year, owing to capacity enhancement at Manzalai field which expected to came online in FY10.
Benefit of Pak Rupee against US dollar
Furthermore, 22.2 percent deprecation in Pak Rupee against US dollar had further supported bottom line earnings of the company, as well as company has realised exchange gain of Rs24.7mn on its foreign currency deposits in 1st quarter of 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.