Qudsia Bano

Pakistan Oilfields Limited’s revenue from sales increased 32% to Rs17 billion in the first quarter of the ongoing financial year 2022-23 (1QFY23) from Rs13 billion over the corresponding period of the previous fiscal. The gross profit of the company increased 63% to Rs11.6 billion in 1QFY23 from Rs7.1 billion recorded in 1QFY22.The company posted a net profit of Rs8.4 billion in 1QFY23 compared to a profit of Rs5.3 billion over the corresponding period of FY22, showing a positive growth of 60% year-on-year.

The increase in profit is primarily the result of a 26.3% increase in the average price of crude oil, an increase in US dollar rate against the rupee, higher interest income from higher deposits and interest rates, and exchange gains on bank deposits, which have been partially offset by higher exploration costs due to charging for dry well costs and lower sales volumes of crude oil and gas compared to the same period of last year, shows an analysis of the company’s finances conducted by WealthPK.

Performance in 2021-22

During the fiscal year 2021-22, the company’s gross sales went up to Rs58.4 billion from Rs39.5 billion in FY21, posting a massive increase of 48% year-on-year.   The gross profit for FY22 stood at Rs34 billion, 57% up from Rs21.6 billion in FY21. The profit-after-tax for the year went up by 94% to Rs26 billion from Rs13.4 billion in FY21.

A 70.3% increase in the average price of crude oil, a 16.2% increase in the price of gas, notional exchange gains on bank balances and greater income on bank deposits as a result of higher deposits and profit rates all contributed to the increase in profit.

Earnings Per Share

The EPS of the company showed mix trend during recent years. In FY19, the EPS was Rs59.44, which dropped to Rs47.14 in FY21. However, the EPS showed massive growth and stood at Rs91.37 in FY22, showing the company’s surging profits due to healthy business.

About the company

Pakistan Oilfields is incorporated as a public limited company. The company is principally engaged in the exploration, drilling, and production of crude oil and gas in Pakistan. Its activities also include the marketing of liquefied petroleum gas under the brand name POLGAS and the transmission of petroleum. The company is a subsidiary of Attack Oil Company Limited, UK, and its ultimate parent is Coral Holding Limited, UK.

Credit: Independent News Pakistan-WealthPk