The result announcement is slightly higher than market expectations on the back of higher than anticipated other income, reported at Rs2.7 billion primarily on the back of exchange gains amid hefty currency depreciation.
However the same was partly offset by higher than anticipated amortization expenses. Other key highlights of the results are as under:
Net Sales were reported at Rs11.0 billion, up 19%QoQ (22%QoQ), where both oil and gas production were higher by 2%QoQ. However the robust growth in topline can be explained by 6.8%QoQ depreciation in Pak Rupee and higher well- head gas prices.
Operating expenses jumped 11%QoQ to Rs2.0 billion, whereas amortization expenses were reported at Rs774 million. On the other hand, exploration expenses of Rs450 million, up 44%QoQ, suggest healthy activity on the exploration front which can be attributed to seismic activities in Taung Block
Other income was reported at Rs2.7 billion, owing to hefty currency depreciation. But, surprisingly, finance costs declined by 39%QoQ, which supported the earnings. `