POL 3QFY24 Result Review — Lower Tax Charges lead to Increase in Earnings (AKD Off the Analyst's Desk Apr 25, 2024)
AKD, Off the Analyst's Desk
POL: 3QFY24 Result Review — Lower Tax Charges lead to Increase in Earnings
Pakistan Oilfields Ltd (POL) reported its 3QFY24 earnings earlier today, wherein the company posted Profit after Tax (PAT) of PkR12.42bn (EPS: PkR43.7) for the quarter, higher by 58%QoQ—above our estimate of PkR28.1/sh
- Total revenue witnessed a decline of 6%QoQ to end at PkR16.3bn, primary attributable to lower average oil prices (down 4.3%QoQ) and an appreciating domestic exchange rate (up 1.3%QoQ).
- However, earnings saw a sharp increase due to a lower tax charge during the outgoing quarter, with the ETR registering at 9.8%, compared to 39% in the previous quarter.
- Other income for the period remained robust, clocking in at PkR3.98bn, up 38%QoQ, possibly due to increased income on earning assets and lower FX losses during the period. To note, company’s cash and ST investments stood at PkR79.1bn as per Mar’24 accounts.
- Exploration expenses fell by 24%QoQ, clocking in at PkR313mn, possibly due to lower prospecting activity during the period.
- This brings 9MFY24 earnings to PkR105.5/sh (vs. PkR107.8/sh during SPLY), down 2%YoY, alongside a dividend payout of PkR25/sh (vs. PkR20/sh in SPLY) during the period.
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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