Sunday ...OCT 30,2011
The profit after tax of the listed exploration and production (E&P) sector has significantly increased by 33 percent to Rs 36.0 billion in the first quarter of FY12 as compared to Rs 27.1 billion in the same period last year.
"Improved sector's topline, significant jump in other income along with controlled expenditure contributed to a significant increase in largest listed E&P sector's profitability in the first quarter of FY12," Nauman Khan, an analyst at Topline Securities said.
"Improved sector's topline, significant jump in other income along with controlled expenditure contributed to a significant increase in largest listed E&P sector's profitability in the first quarter of FY12," Nauman Khan, an analyst at Topline Securities said.
Pakistan Oilfields (POL) led the way, depicting a profitability growth of 55 percent, while other explorers like Oil and Gas Development (OGDC) and Pakistan Petroleum (PPL) also showed a decent growth of 31 percent and 27 percent, respectively.
"Overall, with Pakistan relevant Arab Light crude oil prices stayed firm above the levels of $105 per barrel and production enhancement expected particularly from Kohat based blocks, we maintain 'Over-weight' stance on the sector," Nauman said.
During the first quarter of FY12, sector's topline rose by a decent 18 percent to Rs 76.5 billion on account of favourable price scenario as well as improved oil and gas production.
Unlike popular perception, international crude oil prices relevant for Pakistan ie Arab Light, stayed firm around the average of $106 per barrel, up 43 percent while wellhead gas of uncapped fields are likely to have gone up by 11-18 percent.
During the first quarter of FY12, sector's topline rose by a decent 18 percent to Rs 76.5 billion on account of favourable price scenario as well as improved oil and gas production.
Unlike popular perception, international crude oil prices relevant for Pakistan ie Arab Light, stayed firm around the average of $106 per barrel, up 43 percent while wellhead gas of uncapped fields are likely to have gone up by 11-18 percent.
In addition, enhanced production particularly from Kohat based blocks (Tal, Nashpa and Iklas) more than mitigated the decline in production from other fields.
"Furthermore restricted growth in sector's operating expenses and higher other income also supported the bottomline," he said.
Sector's operating expense rose by a mere 2 percent to Rs 17.0 billion, thanks to lower exploration cost, while other income rose by a significant 129 percent to Rs 4.6 billion as against only Rs 2.0 billion in the same period last year.
Noteworthy, other income contribution to PBT improved to 8.8 percent as against 5.0 percent in the comparable period last year.
"Furthermore restricted growth in sector's operating expenses and higher other income also supported the bottomline," he said.
Sector's operating expense rose by a mere 2 percent to Rs 17.0 billion, thanks to lower exploration cost, while other income rose by a significant 129 percent to Rs 4.6 billion as against only Rs 2.0 billion in the same period last year.
Noteworthy, other income contribution to PBT improved to 8.8 percent as against 5.0 percent in the comparable period last year.
Though OGDC topline grew by 13 percent, major support to the bottomline came from 10 percent decline operating cost primarily on account of substantial reduction in exploration cost and 4-fold increase in company's other income to Rs 2.3 billion.
PPL reaped the benefit from its working interest Tal and Nashpa block as well as higher wellhead gas prices particularly for its uncapped fields of Sui and Kandhkot fields.
PPL reaped the benefit from its working interest Tal and Nashpa block as well as higher wellhead gas prices particularly for its uncapped fields of Sui and Kandhkot fields.
Furthermore, Mari Gas post a PAT of Rs 792 billion, up by a massive 132 percent, however due to its unique guaranteed return formula distributable profit stood at Rs 111 million, up 18 percent from the same period last year, he added.