EUR 4.54 For Business Accounts Only

Pakistan E&Ps: Production growth to lift earnings in 2QFY17

​We expect OGDC to book 2QFY17 EPS of PkR3.75, up 10%QoQ and flat YoY. This will take 1H EPS to PkR7.15, down 10%YoY. Key highlights of the result will be (i) 13%QoQ rise in oil production and (ii) 10% higher oil prices, but (iii) cost of two dry wells will keep earnings growth in check. We also expect an interim dividend of PkR2.0/sh.

PPL is expected to post 2Q EPS of PkR2.73, down 15% YoY, where the company may not book Sui’s new price as it awaits finalization of agreement with the GoP. Nonetheless, similar trends are expected as in case of OGDC, in addition to somewhat improving gas production in large mature fields.

POL’s 2Q earnings met expectations, where EPS of PkR9.88 was flat sequentially and up 3% YoY. Its interim dividend of PkR15.0/sh was, however, lower than expected. Lack of dividend income in 2Q disguised improvement in core profits..