Pakistan Oilfields (POL): 1QFY21 EPS at Rs12.78, up 49% QoQ (In line with expectations)
- Pakistan Oilfields Limited (POL) for 1QFY21 has posted earnings of Rs12.78/share, up 49% QoQ - largely in line with our expectations of Rs12.56/share.
- Earnings growth stemmed from increase in revenues by 53% QoQ on the back of (1) increase in Arab light prices to US$43.5/barrel in 1QFY21 against US$27/barrel in 4QFY20 and (2) increase in Oil and Gas production by 30% and 37% QoQ, respectively.
- Operating expenditures clocked in at US$6.18/barrel, which is in line with average of last four quarters.
- Exploration costs clocked in at Rs76mn, down 80% YoY and 70% QoQ due to absence of any prospecting and drilling activity.
- Royalty charges normalized to 10.8% of the sales in 1QFY21 after falling to 9.8% in 4QFY20.
- Other Income declined by 35% YoY and 65% QoQ due to absence of hefty exchange gains and decline in interest rates.
- Effective tax rate clocked in at 28% compared to 31% in 1QFY20.
Co. and its subsidiaries are principally engaged in the exploration, drilling, production and sale of crude oil and gas and other products.
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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