On an annual basis, POL's revenue increased by 7%, with profit before tax and profit after tax also rising by 7%. Financial charges decreased significantly by 65%, while the tax rate remained stable at 26%, compared to 27% last year.
Showing posts with label POL. Show all posts
Showing posts with label POL. Show all posts
Tuesday 3 September 2024
Pakistan Oilfields; Good Payout
Sunday 28 April 2024
Pakistan Oilfields: 3rd Quarter Earning update
Pak Oilfields (POL) reported earnings per share (EPS) of Rs. 43.55 for the 3rd quarter (Mar 2024), down from Rs. 57.2 last year. No cash dividend was declared. Normally, POL pays cash dividends with half-yearly and annual results.
On a nine-month basis, the EPS was Rs. 105.5, showing a modest decrease from Rs. 107.8 last year.
Net income after tax for the third quarter was Rs 12.36 billion, around 24% down compared to the third quarter last year. The main reason for the decline was on account of 'other income', though the gross profit was slightly up this year and financial charges were substantially reduced by over 87%. But the decline in 'other income' from Rs. 14.3 billion in the 3rd quarter last year to just Rs. 3.98 billion this year had a huge negative impact on the profit this quarter. Note that the other income last year was unusually high and has since normalized.
Exploration costs of Rs 316 million were down 63% over last year.
The POL tax rate was around 10% for the quarter and was about the same as last year. The POL quarterly tax rate sees considerable variance, e.g., for the second quarter, it was close to 39%.
The profitability of POL depends on two key variables: fluctuations in international oil prices and exchange rate changes.
POL holds a 25% stake in National Refinery and a 7% stake in Attock Petroleum, and gets dividends from these companies accounted for under other income. But 'other income' from 'exchange gain' and from financial assets hugely surpasses the dividend income from its holdings. And at times, 'other income' dwarfs the core income of POL.
The financial charges also have an interesting pattern; the inter-group lending and borrowing conceal a lot of what goes on with the company's finances.
POL is one of the heavyweights of PSX, with 3.6% weight in the KSE30 Index and 2.5% in the KSE100 Index. It is not represented in KMI30, however.
Despite being a heavyweight in key Pakistani stock indexes, POL's stock price has underperformed the broader market recently (11% return in 6 months vs 42% for KSE100).
POL is trading at a low PE of 3.5 and a price to book of less than 2.
Its market cap is around $500 million USD.
See POL Price chart and note years of hitting its head to the ceiling.
Wednesday 12 April 2023
POL: Valuation Note
Pakistan Oilfield Ltd (PSX:POL) is trading at a very low Price to Earning Ratio (PE) of less than4 and a low Price to Book (PBV) of close to 2. POL pays a cash dividend twice a year and currently has a high dividend yield of 17%.
In a structured portfolio a weight of 2.5% is recommended for POL.
The latest annual EPS in 2022 was over Rs. 90, which is almost double compared to any earning per share in recent years. On a trailing twelve month basis, EPS remains high.
POL: Investments
Pakistan Oilfields Ltd (PSX:POL) holds substantial quoted and not quoted investments.
In quoted investments, POL holds 19,991,640 ordinary shares (i.e. 25% of the issued capital) of National Refinery Limited (PSX:NRL). POL also holds 6,984,714 shares (i.e. 7% of the issued capital) of Attock Petroleum Limited (PSX:APL). Both, NRL and APL are listed on Pakistan Stock Exchange.
POL: Notes from Directors Report - Annual 2022
For full year Jun 2022, Pakistan Oilfields Ltd (PSX:POL) earned profit after tax of Rs 25.93 billion (2021: Rs.13.38 billion), which is higher by 93.8% on last year.
The profit translates into earnings per share of Rs 91.37 (2021: Rs 47.14 per share).
The increase in profit is mainly related to increase in average price of Crude Oil by 70.3%, Gas average price increased by 16.2%, notional exchange gain on bank balances, higher income on bank deposits because of higher deposits and profit rates.
During the year productions of Crude Oil, Gas and LPG were lower by 10.9% and 9.6% and 2.2% respectively in comparison to last year mainly due to natural decline.
POL share in production, including that from joint ventures, for the year under review averaged 5,528 barrels per day (bpd) of crude, 70.75 million standard cubic feet per day (mmscfd) of gas, 151.83 metric tonnes per day (MTD) of LPG, 1.30 MTD of Sulphur and 51 bpd of solvent oil.
Pakistan Oilfields Limited: Brief Profile
Pakistan Oilfields Limited (PSX:POL) is incorporated in Pakistan as a public limited company. The Company is engaged in exploration, drilling and production of crude oil and gas in Pakistan. Its activities also include marketing of liquefied petroleum gas under the brand name POLGAS and transmission of petroleum.
POL is a subsidiary of The Attack Oil Company Limited, UK and its ultimate parent is Coral Holding Limited. Attock Oil Ltd holds 52.77% shares of POL.
Company Name: Pakistan Oilfields Limited
PSX Ticker: POL
Market Cap of POL was Rs. 121.bn.
PSX Sector: OIL & GAS EXPLORATION
PSX Ticker: POL
Market Cap of POL was Rs. 121.bn.
PSX Sector: OIL & GAS EXPLORATION
Year End: June
Issued Ordinary Shares: 283.8 Million
Free Float: 45.75%
For More info on POL:
Investments/Holdings: In 2005, POL acquired a 25% share in National Refinery Limited (listed on PSX trades under Ticker:NRL. NRL is the only refining complex in the country producing fuel products as well as lube base oils. POL also holds 7% stake in another listed Company Attock Petroleum Ltd, that trades on PSX under Ticker 'APL'.
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