Pakistan Oilfields Limited (POL) is scheduled to announce its 1QFY22’s financial result on 21st Oct’21. We expect the company to post earnings of PKR 5,706mn (EPS: PKR 20.10/share) vis-à-vis PKR 3,629mn (EPS: PKR 12.78), climbing up by 57% YoY. The surge in profitability comes on the back of hefty jump in realized oil prices by 68% YoY. However, oil and gas production dropped by 8% and 9% YoY, respectively in 1QFY22.

Furthermore, we expect exploration costs to arrive at PKR 290mn, up by 4x YoY during 1QFY22 given higher seismic activity at Taung Block.

On sequential basis, the bottom-line is projected to surge by 50% QoQ on account of ascend in oil and gas production by 2% QoQ each, tagged with growth in realized oil prices by 13% QoQ during 1QFY22.

Courtesy – AHL Research