Pakistan Oilfields Limited (POL): Falling production and lower oil prices dampen bottom-line – By AKD Research
Aug 11 2025
AKD Securities
- Company reported net sales of PkR12.3bn during the quarter, down 18% YoY/16%QoQ. The decline was due to significantly reduced gas and oil output of 43mmcfd/4.1k bpd (as per PPIS), down 34%/15%YoY compared to SPLY, amidst natural decline and line-pack pressure in gas transmission system. Furthermore, lower average oil prices and lower well-head prices also contributed to the decline in revenue.
- Exploration expenses remained elevated at PkR1.4bn, likely due to the 3D seis mic surveys conducted by the company in Pariwali D&P (POL: 82.5%) and Ikhlas E.L. (POL: 80%) blocks during the period.
- We reiterate our ‘BUY’ stance for POL, with Dec’25 TP of PkR800/sh and DY of 14% during FY26.
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