Pakistan Oilfield (POL) has released financial results for the year ended 30th June 2019. The Company has reported profit after tax of Rs16.8 billion (EPS: Rs59.44), higher than market expectations. The deviation can be attributed to: 1) lower operating expense, still 23%YoY higher on softer amortization charges, 2) significantly lower exploration and prospecting charges, down 31%YoY due to the slowdown in seismic data acquisition and 3) significantly higher other income, up 120%Yo, dampened to a certain extent by 97%YoY rise in finance costs. The Company has also announced final dividend of Rs30 per share taking, taking full year payout to Rs50 per share.
POL: Income Statement
| (Rs in million) | FY19 | FY18 | YoY |
| Net Sales | 43,977 | 32,665 | 35% |
| Royalty | 4,554 | 3,778 | 21% |
| Operating Expenses | 10,393 | 8,456 | 23% |
| Excise duty and development surcharge | 309 | 308 | 1% |
| Amortization of development and decommissioning costs | 3,312 | 2,987 | 11% |
| Gross Profit | 25,410 | 17,136 | 48% |
| Exploration and Prespecting Expenditure | 2,049 | 2,990 | -31% |
| General and Admin Expense | 181 | 170 | 7% |
| Operating Profit | 23,180 | 13,976 | 66% |
| Other Income | 7,177 | 3,262 | 120% |
| WPPF and WWF | 1,728 | 967 | 79% |
| EBIT | 28,628 | 16,272 | 76% |
| Finance Cost | 3,774 | 1,919 | 97% |
| Profit before Tax | 24,855 | 14,353 | 73% |
| Taxation | 7,983 | 2,969 | 169% |
| Profit after Tax | 16,872 | 11,384 | 48% |
| Earnings per share | 59.44 | 40.10 |