IMS Research has reported on Pakistan Oilfields Ltd. (POL), which posted a 3QFY26 NPAT of PKR7.8bn (EPS: PKR27.47), up 18% YoY and 24% QoQ, surpassing the estimated EPS of PKR21.92 mainly due to a lower effective tax rate. Healthy realized oil prices amid Middle Eastern tensions contributed to robust profitability, bringing 1HFY26 NPAT to PKR19.5bn (EPS: PKR68.75), up 16% YoY.

Key highlights for 3QFY26 include:

– Revenue of PKR15.3bn, up 5% YoY and QoQ, driven by better oil prices.

– Exploration expenses fell 31% QoQ to PKR1.4bn due to reduced activity.

– Other income rose 19% QoQ to PKR2.7bn from APL dividends and higher interest rates.

– The effective tax rate decreased to 22% from 30% SPLY.

POL’s strong results illustrate its resilience amid geopolitical volatility, with substantial cash reserves allowing it to benefit from rising interest rates. The company’s dollarized profitability and consistent dividend policy contribute to its appeal, leading us to maintain a Buy rating with a target price of PKR770/sh.