Pakistan Oilfields posts NPAT of PkR25,935 mn for FY22, higher by 95%

Pakistan Oilfields Limited (POL) reported its earnings earlier today, announcing NPAT of PkR25,935mn for FY22, higher by 95% compared to the same period last year. For the final quarter, the company reported earnings of PkR8,439mn (EPS: PkR29.73), higher by 1.28xYoY and 28%QoQ. The result was higher than our expectations on account of lower-than-expected taxation charge during the final quarter. Along with the result, the company reported a cash dividend of PkR50/sh in addition to the PkR20/sh announced earlier.

·         POL reported net sales of PkR51,945mn for FY22, higher by 44%YoY. POL’s topline grew by 74%YoY/12%QoQ to PkR14,943mn in 4QFY22, driven by higher crude oil prices, along with a weaker PkR against the USD during the period.

·         The company reported finance costs of PkR 5,549mn for FY22, higher by 20.4xYoY. For 4QFY22, the company reported finance costs of PkR2,363mn, higher by 2.5xYoY and 2xQoQ.

·         POL’s PBT clocked in at PkR36,987mn in FY22, higher by 80%YoY, majorly driven by the growth in the company’s topline, along with a relatively subdued increase in operating costs. For the quarter, the company reported PBT of PkR12,164mn, higher by 97%YoY and 20%QoQ.

·         The company reported an effective tax rate of 25.1% for the final quarter, compared to 30.3% in the earlier quarter. Our estimates incorporated a higher tax rate on account of super tax.

·         We have a Buy rating on the stock with a Target Price of PkR570/sh, posing an upside potential of 35%. The stock also offers a dividend yield of 17%.

 Courtesy – AKD Research

 

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