Two of the best companies belonging to energy chain, Pakistan Oilfields (POL) and Attock Petroleum (APL) have released their half yearly financial results for the period ended December 31, 2014. The results were quite depressing amid falling oil prices in international and local market.
POL: Falling oil price dents the bottomline
POL posted profit after tax of Rs1.2 billion (EPS: Rs4.99) for 2QFY15 as against Rs3.3 billion (EPS: Rs13.94) for the corresponding period last year; down by 64%YoY. This substantial decline in earnings can be attributed to falling international oil prices. As POL’s revenue is linked to international oil prices, a declining trend in international oil prices dragged down its revenue by 10%YoY. In addition to that a 371%YoY rise in exploration cost and 12%YoY rise in operating cost negatively affected bottom-line of the Company. Similarly during 1HFY15, profitability of the company dipped by 23% to Rs5.3 billion from Rs6.9 billion for the same period last year. Despite massive decline in profit, the Company declared an interim dividend of Rs15/share as compared to an interim dividend of Rs20/share during same period last year.
APL: Inventory losses drag down the profitability
Profit after tax of the company plunged by whopping 84%YoY for 2QFY15 to Rs209 million as against Rs1.3 billion for comparable period last year, EPS slipped to Rs2.52 from Rs.16.01. Higher than anticipated inventory losses resulted in gross loss of Rs59 million which negatively affected bottom-line of the Company. During 1HFY15, APL’s EPS came down to Rs17.69 from Rs32.2, translating into a YoY fall of 45%. However, the company managed to increase its volumetric sale of furnace oil and motor gasoline by 26%YoY and 14% YoY during 1HFY15 which positively contributed towards its profitability. The result also accompanied by an interim dividend of Rs12.5/share as against an interim dividend of Rs15/share last year.