KARACHI: Pakistan Oilfields Limited (POL) reported a strong surge in profitability for the first quarter ended September 30, 2025, with earnings rising 2.1 times year-on-year to Rs5.4 billion, translating into earnings per share (EPS) of Rs19.13. The quarterly profit, however, fell 27% on a sequential basis.
According to the company’s financial results, net sales declined 15 percent year-on-year to Rs13.1 billion due to lower oil and gas production volumes and a 14 percent drop in average crude oil prices.
On a quarterly basis, sales recorded a 7 percent increase, supported by a moderate recovery in production and an improvement in average oil prices to USD71 per barrel, compared to US$69 per barrel in the preceding quarter.
Royalty expenses also fell by 15 percent year-on-year in line with the decline in sales, while royalty charges as a percentage of sales remained unchanged at 11 percent.
Operating expenses (OPEX) stood at Rs3.2 billion, down 14 percent year-on-year, mainly reflecting lower hydrocarbon output and sales. The company reported OPEX per barrel of oil equivalent (BOE) at USD1.29, compared to USD1.03 in 1QFY25 and USD0.64 in 4QFY25, with the prior quarter benefitting from amortization reversals.
Exploration costs dropped sharply to Rs1.1 billion, a decrease of 85 percent from a year earlier, as the company had incurred high exploration expenses in 1QFY25 due to a dry well charge. POL continued seismic activity during the quarter in the Ikhlas Exploration Licence and Pariwali Development & Production lease.
Other income declined by 50% year-on-year, largely due to lower interest income following a fall in policy rates, and was also down 44 percent quarter-on-quarter on account of exchange losses caused by appreciation of the Pakistani rupee.
The company’s effective tax rate was recorded at 33 percent for the quarter, compared to 45 percent in the same period last year and 25 percent in the previous quarter.
Copyright Business Recorder, 2025
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