Topline Securities Limited - Pakistan Oilfields Ltd. (POL) Pakistan Oilfields (POL): 1QFY19 EPS Rs12.6, +35% YoY (-6% QoQ) (Below expectations)

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Topline Securities Limited

EUR 15.00 For Business Accounts Only

Pakistan Oilfields (POL): 1QFY19 EPS Rs12.6, +35% YoY (-6% QoQ) (Below expectations)

POL announced consolidated earnings of Rs3.6bn (diluted EPS Rs12.6) in 1QFY19, slightly below our expectations, mainly due to loss from associates.
During the outgoing quarter, POL’s revenues were up 46% YoY thanks to 1) higher Arab Light oil prices up 50% YoY, 2) currency devaluation and 3) increased hydrocarbon production.
Hydrocarbon production of the company recorded up to 5% YoY growth in 1QFY19 mainly on the back of increase in gas volumes.
Gas production was up on the back of higher gas flow from Maramzai and additional flow from Jhandial field.
Financial charges were up by 133% YoY during the outgoing quarter mainly on the back of exchange losses owing to currency devaluation.
POL booked loss of Rs157mn from associates in 1QFY19 mainly due to loss of Rs1.1bn posted by its associate National Refinery (NRL). POL’s other associate Attock Petroleum (APL) reported profits of Rs1.5bn in 1QFY19.
We flag 1) inability to receive higher gas price incentive on TAL Block owing to WLO dispute (pending in the court), 2) lower than anticipated international oil prices, 2) significant exploration and development cost and 3) unexpected field shutdown as key risks for POL.

12/10/2018 5 EN

Underlying

Pakistan Oilfields Ltd.

Co. and its subsidiaries are principally engaged in the exploration, drilling, production and sale of crude oil and gas and other products.

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PK0023901017 Pakistan Stock Exchange Pakistan

Provider

Topline Securities Limited

Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.

Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.

Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.

JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).

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