High Gas Prices to Keep Earnings Buoyant In 3Q
Pakistan Oilfields Limited (POL) and Mari Petroleum Company Limited (Mari) have scheduled their board meetings on 16 March 2018 to consider their 3QFY18 financial results. We expect POL to post 3QFY18 earnings of PKR 3.26bn (EPS: PKR 14.47).We expect POL’s normalized revenues to increase 11% QoQ, mainly driven by increase in Arab Light prices and PKR depreciation. Gas flows from Ikhlas block witnessed a decline during the quarter, which were compensated by higher flows from Balkassar block. POL is currently engaged in drilling operations at JoyaMair and Khaur block, and any new reservoir discovery in these blocks can extend the dwindling flows.
Meanwhile Mari’s earnings are expected to clock-in at PKR 4.14bn (EPS: 37.55) up 29% QoQ, mainly on the back of semi-annual adjustment in wellhead gas prices, higher production from Mari field and unbundling of Mari’s entitlement factor. The company plans to carry out further expenditure in Habib Rahi Limestone (HRL) formation for the next 16-20 months, thus we expect higher exploration and prospecting expenditure to continue.
Co. and its subsidiaries are principally engaged in the exploration, drilling, production and sale of crude oil and gas and other products.
Ismail Iqbal Securities (Private) Limited (IISPL) is a TREC holder of the Pakistan Stock Exchange, as well as an SECP registered Underwriter and Book Runner. IISPL provides comprehensive financial services including Equity Sales, Research on Equities and the Macro-Economy, Investment Advisory, Portfolio Management, Corporate Finance, and extensive services for Private Equity investors. IISPL services a diversified client base, from Institutional to Retail Investors including High Net worth Individuals.
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