Pakistan Oilfields Ltd (POL) reported 3QFY25 earnings earlier today, wherein the company posted Profit after Tax (PAT) of PkR6.6bn (EPS: PkR23.3) for the quarter, down 47% on a YoY basis — in line with our expectations. The sharp decline in the bottom line is primarily attributable to the absence of last year’s one-time tax credit related to the depletion allowance, as well as lower income compared to the same period in the previous year.

• Net Revenues witnessed a decline of 11%YoY to end at ~PkR14.6bn during the quarter, primarily attributable to lower oil prices (down 7%YoY), coupled with reduced hydrocarbon production, with oil and gas output estimated at 4.5kbpd and 53mmcfd (↓8%/18%YoY), respectively, as per PPIS data.
• Exploration expenses totalled Pkr1.4 billion, a 4.5 times increase compared to the same period last year. This was possibly due to G&G activities being carried out in North Dhurnal and D.G. Khan blocks.
• Other Income declined by 28% year-over-year, settling at PKR 2.8 billion for the quarter, amid lower cash and short-term investment balances, alongside declining yields on investments during the period. Notably, the company’s money and short-term investments stood at PKR 102 billion (PKR 361 per share), down 11% year-over-year as of March ’25 accounts.
• Operating charges stood at PKR 3.2 billion, up 25% year-over-year, possibly due to upward adjustments in administrative costs.
• The company’s ETR for the quarter stood at 30%, vs 10%/37% in SPLY/2QFY25.
• We have a ‘BUY’ call on Pakistan Oil Fields Ltd (POL) with a December 2025 target price (TP) of PkR750/share, alongside a dividend yield (DY) of 14.5% for FY25E.

 Courtesy – AKD Research