Pakistan Oilfields Limited (POL): Result Review: POL 2QFY23 EPS Rs21, DPS Rs20 – By Sherman Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Pakistan Oilfields Limited (POL) posted 2QFY23 EPS of Rs21, compared to EPS of Rs20 in 2QFY22, up 5%YoY. We believe that higher operating and exploration cost restricted bottom-line growth. Moreover, POL also announced DPS of Rs20 which remained much lower than market consensus.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Company&rsquo;s net revenue grew by 11% to Rs14bn. We believe that company&rsquo;s gas and oil production to remain lower by 10-13%YoY. However, estimated 30% rise in net realized prices of both gas and oil (mainly due to Pak rupee devaluation against the US dollar) led to overall growth in topline. Moreover, revenue from LPG business is likely to remain flat.</span></li></ul...