KARACHI, Sept 12: Pakistan Oilfields Limited (POL) has announced a 51 per cent increase in after-tax profit to Rs3,763 million, which translated into earning per share (eps) of Rs28.63 for the year ended on June 30, 2005.
The earnings were either in line or better than what most analysts had expected. The pinch was, however, in the payout. The board, which announced the results after the close of the market on Monday, declared a final cash dividend at Rs12.50 per share. The market had high hopes of a bonus issue, which did not materialize.
Analysts were generally surprised over a nil bonus issue, believing that the company ought to have an uneasy cash flow situation for it had just acquired a 25 per cent stake in National Refinery Limited (NRL). The Attock Oil Group -— the parent of POL -— was also vying for the acquisition of PSO. Apart from that, the company was also in the habit of distributing a bonus every other year, and in that respect also a bonus was expected for the latest year.
Although the results were unveiled after the close of trading at the KSE on Monday, the POL stock declined by Rs3.25 and finished at Rs352.25, with trading seen in 4.17 million shares.
Elixir Securities in its post-result review observed that the growth in earnings for the latest year was on the back of firm international oil prices (Benchmark Arab Light Crude +32pc YoY) and enhanced production from Pariwali concession during the final quarter. With around 50 per cent of revenues flowing in from oil, POL took full advantage of the high oil price environment with top line, depicting growth of 32 per cent YoY.
The dual impact of high oil prices and enhanced production was witnessed during the final quarter with the company recording earnings of Rs1,362m (EPS: Rs10.36), 36 per cent higher on quarter basis.
A BMA Capital Management report stated that the 52 per cent top-line increase had come from crude oil whose wellhead pricing was linked with the international crude oil prices under the current petroleum policy.
“The growth is mainly attributed to the significant rise in the international crude prices. POL realized a unit crude sale price of $39.6 per barrel in FY05, up from $29.3 in FY04,” calculated the analysts, who affirmed that the production of crude from a new well at Pariwali field in the last quarter also contributed to the increase in profitability.
