August 29, 2023 (MLN): Pakistan Oilfields Limited (PSX: POL) 's profitability rose by 39.30% YoY in FY23 as its profit after tax clocked in at Rs37.30 billion [EPS: Rs131.29] compared to a profit of Rs26.78bn [EPS: Rs94.28] in the same period last year (SPLY).
Along with the results, the company announced a Final Cash Dividend for the fiscal year ended June 30, 2023, at Rs60 per share i.e. 600% to all shareholders of the company.
Going by the results, the company's net revenue grew by 17.25% YoY to Rs62.43bn as compared to Rs53.25bn in SPLY.
The cost of sales rose by 6.91% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 23.09% YoY to Rs41.86bn in FY23.
However, during the review period, other income rose significantly by 2.36x YoY to stand at Rs26.44bn in FY23 as compared to Rs11.21bn in SPLY.
POL's profitability was further supported by the reversal of impairment on investment in the associated company that clocked in at Rs2.16bn as compared to the impairment loss of Rs1.98bn in SPLY.
However, the company recorded a loss from its share from associates of Rs231.54m in FY23 as compared to a gain of Rs3.58bn in FY22.
On the expense side, the company observed an increase in administrative expenses by 48.78% YoY and other charges by 22.95% YoY to clock in at Rs348.61 million and Rs2.5bn respectively during the review period.
Exploration costs incurred by POL soared to Rs6.72bn in FY23 as compared to Rs877.04m in the corresponding period last year.
The increase in the exploration costs can be attributed to the higher geological and geophysical costs during the quarter.
The company’s finance costs inflated by 73.59% YoY and stood at Rs9.63bn as compared to Rs5.55bn in FY23, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs13.74bn against the Rs11.35bn paid in the corresponding period of last year, depicting a rise of 39.30% YoY.
| Consolidated Financial Results for Year ended 30 June 2023 (Rupees in '000) | |||
|---|---|---|---|
| June 23 | June 22 | % Change | |
| Revenue | 67,725,392 | 59,934,299 | 13.00% |
| Sales tax | (5,066,406) | (6,438,430) | -21.31% |
| Excise duty | (224,174) | (245,203) | -8.58% |
| Net sales | 62,434,812 | 53,250,666 | 17.25% |
| Cost of sales | (20,570,650) | (19,240,596) | 6.91% |
| Operating costs | (12,515,195) | (10,358,550) | 20.82% |
| Royalty | (6,880,170) | (5,563,309) | 23.67% |
| Amortization of development and decommissioning costs | (1,175,285) | (3,318,737) | -64.59% |
| Gross Profit | 41,864,162 | 34,010,070 | 23.09% |
| Exploration costs | (6,719,577) | (877,038) | 666.17% |
| Administrative expenses | (348,609) | (234,304) | 48.78% |
| Reversal of impairment I (impairment) on investment in associated company | 2,164,811 | (1,981,825) | – |
| Share of net income of associate | (231,540) | 3,577,350 | – |
| Other Income | 26,440,550 | 11,211,117 | 135.84% |
| Other charges | (2,495,747) | (2,029,809) | 22.95% |
| Finance cost | (9,631,770) | (5,548,567) | 73.59% |
| Profit before taxation | 51,042,280 | 38,126,994 | 33.87% |
| Taxation | (13,741,673) | (11,350,380) | 21.07% |
| Profit for the year | 37,300,607 | 26,776,614 | 39.30% |
| Basic and diluted earnings/ (loss) per share | 131.29 | 94.28 | – |
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Posted on:2023-08-29T15:57:46+05:00
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