AHL Research has reviewed the financial performance of Pakistan Oilfields Limited (POL) for the fiscal year 2025 (FY25) and reported a profitability of PKR 85.2 per share and a dividend per share (DPS) of PKR 50.0.
POL recently announced its financial results, reporting a profit after tax of PKR 24,182 million, resulting in an earnings per share (EPS) of PKR 85.19 for FY25. This reflects a decline of 38% year-over-year (YoY), primarily due to increased exploration expenses related to a dry well during the period and the absence of a reversal of the provision for depletion allowance in the quarter. Quarterly earnings for 4QFY25 were PKR 7,428 million (EPS: PKR 26.17), showing a 19% decrease YoY. Additionally, POL declared a final cash dividend of PKR 25 per share, bringing the total for FY25 to PKR 50 per share.
**Result Highlights:**
Net sales in FY25 decreased by 13% YoY, amounting to PKR 57,117 million compared to PKR 65,290 million in the same period last year (SPLY). This decline was driven by a 12% YoY drop in the average realized oil price and a 1% YoY appreciation of the Pakistani Rupee against the US Dollar. The topline for 4QFY25 reached PKR 12,282 million, down 18% YoY, influenced by a 12% YoY fall in average realized oil prices and reductions in oil and gas production of 6% and 21% YoY, respectively.
Exploration costs soared by seven times YoY in FY25, totaling PKR 11,180 million, primarily due to higher costs associated with the dry well Balkassar Deep 1A recorded in 1QFY25. For the quarter 4QFY25, exploration costs reached PKR 1,407 million, representing a ninefold increase YoY due to escalated geological and geophysical costs during the period.
Other income experienced a 12% YoY decline, settling at PKR 14,529 million during FY25, attributed to lower returns from cash and cash equivalents due to decreased interest rates. In the quarter 4QFY25, other income was PKR 3,310 million, plummeting by 31% YoY for the same reasons.
The company’s effective tax rate was 25.1% in 4QFY25, compared to 28.1% in 4QFY24.
As of June 2025, POL’s cash position was PKR 109 billion, an increase from PKR 103 billion in March 2025.
*Courtesy – AHL Research*
