AHL Research has released a production update for the oil and gas sector for FY25, revealing a 12% decline in oil and a 7% decline in gas production in Pakistan. This drop is attributed to forced curtailments at various fields, including Nashpa and TAL, due to decreased gas demand. Major oil fields such as Nashpa and Makori East faced significant production reductions, while key gas fields like Mari and Sui also reported declines.

Overall, production decreased by 15% for oil and 10% for gas on a quarterly basis in 4QFY25.

**Drilling Activity:** In FY25, 23 exploratory wells and 30 appraisal/development wells were drilled, falling short of the targets of 27 and 40, respectively.

**Discoveries:** Pakistani E&P companies made 21 discoveries in FY25, totaling around 3,187 bopd of condensate and 303 mmcfd of gas.

**Result Previews:** – **POL:** Pakistan Oilfields Limited’s profit is projected at PKR 22,560 million (EPS: PKR 79.48), down 42% YoY, due to high exploration costs and lower oil prices. A quarterly profit of PKR 5,807 million (EPS: PKR 20.46) reflects a 37% YoY decline. A cash dividend of PKR 48.00/share is expected. –

**MARI:** Mari Energies Limited expects earnings of PKR 60,758 million (EPS: PKR 50.61), a 21% YoY decline. Quarterly profits for 4QFY25 are estimated at PKR 14,457 million (EPS: PKR 12.04), down 44% YoY. A final dividend of PKR 18.00/share is anticipated. –

**OGDC:** Oil & Gas Development Company is projected to report earnings of PKR PKR 165,392 million (EPS: PKR 38.46), a 21% YoY decline. Quarterly profits are expected at PKR 35,787 million (EPS: PKR 8.32), down 6% YoY. A final cash dividend of PKR 4.00/share is anticipated. –

**PPL:** Pakistan Petroleum Limited is expected to report a profit of PKR 92,853 million (EPS: PKR 34.12), reflecting a 19% YoY decline due to reduced production and lower prices. Quarterly profitability is expected to rise by 13% YoY to PKR 20,144 million (EPS: PKR 7.40).

Courtesy – AHL Research