POL: Expanding the asset base
With an asset base comprising 12 leases and possessing 9 exploration licenses, POL has lagged behind its peers in terms of exploration activities, spudding only 9 wells in the past 10 years. However, the company is broadening its asset base as it recently added Jhandial to its production portfolio while drilling another exploratory well at Khaur. Moreover, the company is also conducting seismic surveys at Balkassar lease while processing previous data of another field as well. In this regard, addition of another producing well can further reduce its reliance on the JV fields (84% currently) while augmenting its top-line at the same time. With regards to its 1HFY18 financial performance, the company is expected to post net profits of PkR7.68bn (EPS: PkR32.45), higher by 65% YoY as it is likely to benefit from 1) 20.8%YoY intl. oil price increase, 2) Jhandial being added to the production facility and 3) the re-pricing of TAL block fields. However, with lack of information regarding the reserve size at Jhandial and lower than expected flows from the same, our NAV based TP of PkR572/sh assumes 9.2mn bbls of oil and 117BCF of gas reserves in the said field. We highlight that any deviation in the official numbers can alter our TP accordingly.
Co. and its subsidiaries are principally engaged in the exploration, drilling, production and sale of crude oil and gas and other products.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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