Pakistan Oilfields Ltd (POL) reported its 1QFY26 financial results today, with NPAT of PkR5.4bn (EPS: PkR19.1), up 111%. The result is in line with our expectations, with the increase compared to last year due to lower exploration expenses, according to a report released by AKD Research.

• The company reported net sales of PkR13.1bn during the quarter, down 15%YoY, however, up by 7%QoQ.
• The annual decline was due to significantly reduced gas and oil output of 47mmcfd/4.4k bpd (as per PPIS), down 23%/6%YoY compared to SPLY, amidst natural decline and line-pack pressure in gas transmission system. Furthermore, lower average oil prices and lower well-head prices also contributed to the decline in revenue.
• Exploration expenses clocked in at PkR1.1bn, down by 85%YoY. Notably, sharp rise in exploration expenses to PkR7.7bn last year was led by a dry-well in the wholly-owned Balkassar block (Balkassar Deep-1A). During the quarter, company conducted 3D seismic surveys in Pariwali D&P (POL: 82.5%) and Ikhlas EL (POL: 80%).
• Other income clocked in at PkR1.9bn during the quarter, down 50%YoY/44%QoQ. The decline is possibly due to falling investment yields during the period, despite higher cash and short term investment of PkR112bn as of Sep’25
• The effective tax rate for the quarter stood at 33%, compared to ETRs of 25% and 45% in SPLY/4QFY25, respectively.
• We reiterate our ‘Buy’ stance for POL, with Dec’25 TP of PkR800/sh and DY of 12.5% during FY26.

https://research.akdsl.com/638972688242598767.pdf

AKD Research