Pakistan Oilfields Limited (POL) released its financial results today, disclosing a profit after tax of PKR 36,453 million (EPS: PKR 128.42) for FY23, as opposed to PKR 25,935 million (EPS: PKR 91.37) in FY22, marking a substantial 41% year-on-year (YoY) increase. Conversely, in the fourth quarter of FY23, earnings amounted to PKR 5,864 million (EPS: PKR 20.66), experiencing a YoY decline of 31%. Concurrent with this report, the company declared a final cash dividend of PKR 60.00 per share (compared to PKR 80.00 per share in FY23).

Key Highlights of the Results:

In FY23, the company’s revenue increased by 17% YoY, reaching PKR 60,952 million, primarily due to the depreciation of the Pakistani Rupee. This compares to PKR 51,945 million during the same period in the previous year. In 4QFY23, net sales reached PKR 15,081 million, showing a modest YoY growth of 1%, largely attributable to a 32% YoY appreciation of the US Dollar against the PKR.
Oil and gas production experienced declines of 10% and 4% YoY, respectively, while realized oil prices dropped by 34% YoY.
Exploration costs surged significantly in FY23, increasing by 7.7 times YoY to PKR 6,720 million, compared to PKR 877 million in the same period last year. This increase was due to two unsuccessful drilling attempts during the year. In 4QFY23, exploration costs reached PKR 390 million, marking a substantial 104% YoY increase, primarily due to higher geological and geophysical expenses.
Other income witnessed robust growth, with a 131% YoY increase, totaling PKR 27,062 million for FY23, driven by substantial gains from foreign currency exchange and increased income from cash and cash equivalents. However, in 4QFY23, other income decreased by 18% YoY to PKR 3,993 million, mainly due to reduced gains from currency exchange during the quarter.
The company’s effective tax rate for 4QFY23 was 52%, up from 25% in 4QFY22. This higher tax rate includes an additional 6% super tax imposed on FY23’s pre-tax profit.

(PKR mn)FY2023FY2022YoY4QFY234QFY22YoYQoQ
Net Sales60,95251,94517%15,08114,9431%-5%
Operating Costs11,1609,11522%3,1672,52026%13%
Gross Profit41,73733,94723%11,2879,44320%8%
Exploration Cost6,7208777.8x390191104%-54%
Other Income27,06211,697131%3,9934,892-18%-72%
Profit after Taxation36,45325,93541%5,8648,439-31%-64%
EPS (PKR)128.91. 21.30.  
DPS (PKR)80.0070.00 60.0050.00  
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