August 11, 2021 (MLN): Pakistan Oil Fields (POL) has announced its FY21 result where it posted a profit after tax of Rs15.4 billion (EPS: Rs54.24) i.e., around 6% higher than the profit after tax of Rs14.56bn (EPS: Rs51.23) reported in the same period last year (SPLY).
In conjunction with financial results, the company offered an attractive final cash dividend for the year ended June 30, 2021, at Rs30 per share i.e., 300%
As per the financial statement of the company, the net sales witnessed a marginal decline of 2% YoY to Rs36.84bn against Rs37.45bn in SPLY. This decline might be attributed to the drop in the production of oil and gas and the appreciation of PKR against the USD.
The gross margin of the company has been squeezed to 59% as compared to 60% in SPLY owing to higher operating costs. Exploration costs declined by 65% YoY during the year.
Meanwhile, due to the lower interest rate environment, the finance cost dipped 88% YoY to clock in at Rs259mn, providing some cushion to the bottom line. Moreover, the company saw Rs1.63bn reversal impairment on investment in the associated company that also supported its financial health.
Among other line items, other income plunged by 66% YoY to Rs1.52bn as compared to Rs4.47bn during SPLY on an account of lower exchange gains.
Lastly, higher effective taxation of 33% as compared to 26% during SPLY, keeping the profits in check.
|
Consolidated Financial Results for the Year ended June 30, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-21 |
Jun-20 |
% Change |
|
Sales |
40,424,288 |
41,255,712 |
-2.02% |
|
Sales tax |
(3,308,056) |
(3,526,193) |
-6.19% |
|
Excise duty |
(272,314) |
(279,055) |
-2.42% |
|
Net Sales |
36,843,918 |
37,450,464 |
-1.62% |
|
Operating costs |
(9,081,797) |
(8,602,402) |
5.57% |
|
Royalty |
(3,907,673) |
(4,010,063) |
-2.55% |
|
Amortization of development and decommissioning costs |
(2,211,754) |
(2,409,826) |
-8.22% |
|
|
|
|
|
|
Gross Profit |
21,642,694 |
22,428,173 |
-3.50% |
|
Exploration cost |
(494,255) |
(1,405,418) |
-64.83% |
|
Administrative expenses |
(219,101) |
(216,084) |
1.40% |
|
Finance costs-net |
(259,658) |
(2,211,654) |
-88.26% |
|
Other charges |
(1,545,551) |
(1,387,916) |
11.36% |
|
|
|
|
|
|
Other income-net |
1,516,730 |
4,476,037 |
-66.11% |
|
Share in (loss)/profits of associated companies |
793,414 |
(939,262) |
– |
|
Reversal impairment/ (Impairment)on Investment in associated company |
1,625,412 |
(1,130,160) |
– |
|
Profit before taxation |
23,059,685 |
19,613,716 |
17.57% |
|
Provision for taxation |
(7,657,435) |
(5,048,933) |
51.66% |
|
Profit for the year |
15,402,250 |
14,564,783 |
5.75% |
|
Earnings per share – basic and diluted (Rupees) |
54.24 |
51.23 |
5.88% |
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