KARACHI: Pakistan Oilfields Ltd’s (POL) half-yearly after-tax profit rose 27 per cent year-on-year to Rs4.66 billion due to lower exploration cost, decline in financial costs and upsurge in top line.
The profit translated into earnings per share (eps) of Rs19.68 while the company’s board of directors paid an interim dividend of Rs15 per share. Sales rose 4.6pc year-on-year to Rs12.8bn while operating costs fell 7.8pc to Rs4.12bn.
The APL posted a profit of Rs3.2bn (eps: Rs38.06) during the half-year ended Dec 31, a year-on-year growth of 92pc. Its earnings during the October-December quarter stood at Rs1.594bn (eps: Rs19.21), a rise of 2pc quarter-on-quarter and 68pc year-on-year.
The board distributed an interim cash dividend of Rs15 per share. “The results were above expectation but the payout was below expectations,” analysts at Intermarket Securities said.
The company wrote back about Rs661 million of Workers Welfare Fund provisions (other charges) following a Supreme Court decision deeming it as not a tax.
Sajjad Hussain, analyst at BMA Capital Management, attributed the growth in earnings to several factors including a 13pc year-on-year growth in sales and 430 basis points (bps) higher margins following lower fuel and power costs.
In October-December, earnings remained flat at Rs687m (eps: Rs6). Though dispatches were up 12pc quarter-on-quarter, 410bps quarter-on-quarter decline in margins following a jump in coal prices acted as a limiting factor.
