KARACHI: Pakistan Oilfields Limited’s (POL) consolidated profit increased 22% in the fiscal year ended June 30, as its exploration cost cut to half and earnings from associated firms doubled.
POL booked a consolidated profit of Rs10.12 billion against Rs8.26 billion in the preceding year. This translated into earnings per share at Rs42.65 as compared to Rs34.75 in the previous year, according to a notification from the company to Pakistan Stock Exchange.
Board of directors recommended a final cash dividend at Rs20 per share, which will be paid to those shareholders whose names will appear in the register of members on September 21, 2016. The entitlement is in addition to interim dividend(s) already paid at Rs15 per share.
The share price improved by Rs2, or 0.5%, and closed at Rs387.32 with a turnover of 2.11 million shares. Topline Securities said in a post-result comment that “earnings improved on the back of higher share from associates and reversal of impairment loss on associated companies.” The exploration cost was cut by 57% to Rs2.05 billion in the year under review from Rs4.72 billion in the preceding year.
The earning from associated companies increased 89% to Rs2.19 billion from Rs1.16 billion last year. Also, it booked a gain of Rs1.07 billion on reversal of impairment losses in the year against a loss of Rs1.16 billion on this account last year.
The gross sales declined by 18% to Rs28.20 billion from Rs34.42 billion last year.
Arif Habib Limited said in a post-result note that “the decline in net sales could be attributed to average Arab Light prices nose diving to $40.8/barrel in FY16 when compared to $72.8/barrel in FY15 (down 44%).”