Pakistan Oilfields Limited (POL) held its corporate briefing session today to discuss its FY22 financial results. POL posted unconsolidated earnings of Rs25.9bn (EPS Rs91.37) in FY22, up 94% YoY. Despite decline in oil/gas production, the company posted a phenomenal growth in bottomline owing to higher oil prices, rupee devaluation and higher other income on the back of exchange gain on FX deposits.
In FY22, production of crude oil and gas were lower by 11% YoY and 9.6% YoY, respectively. The production of LPG was also down by 2.2% YoY.
The management foresees that the company may not witness production decline going forward in upcoming years as the production from Mamikhel South and Taung block would likely increase production profile of POL.
With regards to Jhandial field, the company has attempted drilling in Jhandial – 2 which was unsuccessful while POL also conducted a workover job in Jhandial -1. On other hand, Jhandial – 3 is also in the planning phase. The company would disclose if any downward revision in Jhandial reserves takes place however it would not have a material impact from impairment.
Pertaining to recent discovery in Tolanj West the company expect the production flows (8.3mmcfd and 34 bopd) are expected to add in the system in next 1-2 months.
In addition to this, company is actively engaged with operator and regulator for Mamikhel South and trying its best to start the production from this field. Mamikhel South is on hold as pricing for the same has not been determined. Management expects it to be connected to the main stream going ahead. The well has production potential of 3,240 bpd of condensate and 16.12mmcfd of gas.
The company is in a better position among its peer with regards to mounting circular debt as all the receivables on the gas sales are normally recovered by POL.
POL has continuously participating in the bidding process and will also participate in the new block auction which is going to be held in October 2022. The company is also pursuing to increase the size of exploration into its existing awarded areas.
The status on Mardankhel well remains the same due to security issues as the company is making efforts to address the issue.
The pricing of the same is different from rest of Tal block as the company is trying to resolve the matter from regulatory and court point of view.
Courtesy – Topline Research