⚡ Flash Summary

Pakistan Oilfields Limited (POL) presented its Corporate Briefing Session-2025. The company highlighted its exploration and production activities across various blocks. Key production volumes for June 2025 included 1,622 thousand barrels of crude oil, 19,362 million cubic feet of gas, and 48,607 metric tons of LPG. The statement of profit or loss showed decreased net sales and profit for the year compared to June 2024, while exploration costs increased significantly.

📌 Key Takeaways

• 🇵🇰 POL is a leading oil and gas exploration and production company listed on the Pakistan Stock Exchange.
• 📅 POL was incorporated on November 25, 1950, as a subsidiary of the Attock Oil Company Limited (AOC).
• ⛽ POL produces LPG, solvent oil, and Sulphur, marketing LPG under the POLGAS brand.
• 🛢️ POL operates a network of pipelines, including the Khaur Crude Oil Decanting Facility (KCDF).
• 🤝 POL holds a 25% share in National Refinery Limited.
• 🏢 AOC holds a 52.77% shareholding in POL.
• 💼 POL holds a 51% shareholding in CAPGAS (Private) Limited.
• ⛏️ At Ikhlas block, Jhandial-2 site track drilling is in progress at 17,200 ft.
• 🗺️ At Pariwali Lease, 57.28 Square Kilometer of 3D seismic data has been acquired out of 165.37 Square Kilometers.
• 🕳️ Adhi South-9 well is currently producing around 623 barrels of oil per day and 1.4 mmscf of gas per day.
• 💧 Makori Deep-03 well flowed 22.08 mmscf of gas per day and 2,112 barrels of condensate per day.
• 📈 North Dhurnal block has completed 3D Seismic data acquisition.
• 🚧 Razgir well pipeline construction has been completed, with production expected in the first quarter 2025-26.
• 📜 Multanai & Saruna West Blocks agreements have been signed with the Government (100% & 40% share respectively).
• 🏆 POL has won Jherruck Block with 100% share in the latest bidding round.

🎯 Investment Thesis

HOLD. The decrease in profitability is concerning, but the company is still profitable. The aggressive exploration program shows growth potential. I am neutral with current information. I will review once they address the decrease in profitability and sales and their next announcement. Price target Rs 300, time horizon 12 months.