AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
ISLAMABAD: Pakistan Oilfields Ltd (POL) announced a 19% decrease in net profit after tax (NPAT) for the fourth quarter of fiscal year 2025, amounting to PkR7.4 billion, or an earnings per share (EPS) of PkR26.2. This result, while surpassing some expectations due to reduced operating expenses, highlights the challenges facing the company, including declining production and lower oil prices.
For the entire fiscal year 2025, POL’s earnings fell by 38% to PkR24.2 billion, with an EPS of PkR85.2. The company declared a final cash dividend of PkR50 per share, bringing the total annual payout to PkR75 per share, down from PkR95 per share in the previous fiscal year.
The company’s net sales for the quarter hit PkR12.3 billion, marking an 18% year-on-year and 16% quarter-on-quarter decline. This decrease was attributed to a significant drop in gas and oil production, with output figures at 43 million cubic feet per day and 4,100 barrels per day, respectively, both showing substantial year-on-year reductions. The decline is attributed to natural decreases and pressure in the gas transmission system, compounded by lower average oil and well-head prices.
Exploration expenses remained high at PkR1.4 billion, driven by 3D seismic surveys in the Pariwali D and P and Ikhlas E.L. blocks, in which POL holds substantial interests. Other income saw a 31% drop to PkR3.3 billion, likely due to lower investment yields, despite the company’s significant cash and short-term investments totaling PkR109 billion as of June 2025.
Royalty charges decreased by 22% to PkR1.3 billion, reflecting the lower topline. However, finance costs increased by 69% to PkR1.8 billion. The effective tax rate for the quarter was 25%, contributing to a fiscal year 2025 effective tax rate of 33%, up from 26% the previous year.
Despite the challenges, AKD Securities Limited maintains a ‘BUY’ recommendation for POL, with a target price of PkR800 per share by December 2025 and a projected dividend yield of 14% for fiscal year 2026.