Pakistan Oilfields Records Decline in Earnings but Declares Robust Dividend

Islamabad: Pakistan Oilfields Ltd (POL) has announced its financial results for the second quarter of fiscal year 2025, reporting a profit after tax of PkR7.6 billion, a 4% decrease compared to the same period last year. Despite the decline, the company declared an interim cash dividend of PkR25 per share, raising the half-year payout ratio to 70%, significantly higher than the 40% recorded in the same period last year.

According to a statement by AKD Securities Limited, the company’s net revenues fell by 15% year-on-year to approximately PkR14.8 billion. This decline was primarily due to a reduction in oil prices and a decrease in crude output. Oil and gas production for the quarter was estimated at 4.5 kbpd and 69 mmcfd, reflecting year-on-year changes of 6% and 9%, respectively.

Operating expenses decreased by 5% year-on-year to PkR3.5 billion, while exploration expenses increased by 51% to PkR626 million. Finance income rose by 61% to PkR4.6 billion, attributed to higher investment returns amid declining fixed-income yields. The company’s effective tax rate for the quarter stood at 37%, compared to 39% in the same period last year.

AKD Securities Limited maintains a ‘BUY’ recommendation on the stock, with a target price of PkR750 per share by December 2025 and a forecasted dividend yield of 11.7% for FY25.

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