⚡ Flash Summary

Pakistan Oilfields Limited (POL) reported a profit after tax of Rs. 24.18 billion for the year ended June 30, 2025, a significant decrease of 38.24% compared to the previous year’s Rs. 39.15 billion. The decrease is attributed to charging the cost of the Balkassar Deep-1 well to exploration expenses, along with reduced sales due to enhanced pipeline pressures for gas distribution. Despite these challenges, POL continues to focus on core exploration and production activities, demonstrating resilience and a commitment to long-term value creation. POL’s announcement of a video link facility for the Annual General Meeting is a positive step to include shareholders.

📌 Key Takeaways

• 🚨 Profit after tax decreased significantly by 38.24% to Rs. 24.18 billion from Rs. 39.15 billion in 2024.
• 📉 Earnings per share (EPS) dropped to Rs. 85.19 compared to Rs. 137.93 in the prior year.
• 💰 Cash dividend reduced from Rs. 95 to Rs. 75 per share.
• 📉 EBITDA fell from Rs. 55.036 billion in 2024 to Rs. 35.342 billion in 2025.
• 📉 Saved Foreign Exchange down from US$ 423 million to US$ 394 million.
• ⛽ Net sales decreased to Rs. 57.117 billion from Rs. 65.290 billion.
• 🚧 Exploration costs increased substantially to Rs. 11.180 billion compared to Rs. 1.606 billion in 2024.
• 📈 Company has a separate IT wing to control and monitor related E&P functions and continuously upgrading its IT structure to cope with recent advancement in technology.
• 🚧 Has near field facilities at all locations of major operations, enabling rapid monetization (e.g. Jhandial-3 was connected to production in record time).
• 💧Well established pipeline network (from POL owned and operated fields to Attock Refinery Limited) which safely transported 8.2 million barrels of crude during the year.
• ✔ Declared dividend of Rs. 75 per share i.e. 750% (500% final and 250% interim).
• 🌱 Continuous focus on cost discipline and revenue enhancement strategies.
• 🌍 Contribution to national exchequer was Rs. 26.615 billion (down from Rs. 30.931 billion in 2024).
• 🛢 Production enhancement is being given due importance, including a focus on drilling of development wells.

🎯 Investment Thesis

Given the decrease in profitability and EPS, a HOLD rating is given. The negative performance is attributed to the Balkassar Deep-1 well and lower earnings from royalties. However, the company continues to have good prospects for future long-term profits, but the present high uncertainties of the market warrant a Hold position in POL shares.