KARACHI – Pakistan Oilfields Limited (POL) is likely to earn a profit after tax (PAT) of Rs 5,165 million with earnings per share of Rs 21.84, a phenomenal 56 percent annual rise. This massive rise is largely driven by an annual rise in oil and gas production of 12 percent and 82 percent respectively.
Net revenue of the company is estimated to rise by an annual 38 percent to Rs 11,294 million compared to Rs 8,173 million recorded in the same period last year. The phenomenal jump in top line is due to higher oil and gas production of 12 percent and 82 percent respectively.
The rise in production is mainly attributable to Manzalai whose oil and gas production jumped by an annual 52 percent and 2.2x respectively. In addition, crude oil prices surged by an annual 14.3 percent during the period which would further augment net revenue of the company.
POL is expected to register a 33 percent annual earnings growth in FY11. This would be driven by full year impact of Manzalai field, contributing around Rs 9.0 per share in FY11 earnings, said Shahbaz Ashraf of Arif Habib. He added that oil and gas production of the company would surge by an annual 24 percent and 40 percent to 5,100 bopd and 90mmcfd of gas.
MOL is drilling an exploratory well in Margalla 01, where POL has a 30 percent stake. This well has already reached its target depth and is close to testing phase. If this well is found dry, it would dent POL’s earnings by 0.50 per share. Tolanj X-1 (TAL block), where POL’s stake is 21.1 percent, has even achieved its target depth and will begin testing soon.
Moreover, exploratory well Domial-1 (POL 80 percent stake) is a concern for the company where drilling is suspended for the last six months. If this well is found dry, it would drop the company’s earnings by Rs 2.0 per share. However, drilling in Domial-2 has started and final results of all activities would be unveiled in 2HFY11.
