KARACHI: Pakistan Oilfields Limited (POL) has reported a robust Rs5.4 billion profit for the first quarter ended September 30, 2025, marking a 2.1-fold year-on-year increase, despite a drop in sales revenue. The earnings translate into an earnings per share (EPS) of Rs19.13, though quarterly profit was down 27% compared to the previous quarter.
According to the company’s financial statement, net sales fell 15% year-on-year to Rs13.1 billion, primarily due to lower oil and gas production volumes and a 14% decline in average crude oil prices. However, sales improved 7% quarter-on-quarter, supported by a partial recovery in output and a rise in average oil prices to USD 71 per barrel, up from USD 69 in the preceding quarter.
Royalty expenses declined 15% year-on-year in line with reduced sales, maintaining their share at 11% of total revenue. Operating expenses (OPEX) were reported at Rs3.2 billion, a 14% decrease from last year, reflecting lower hydrocarbon production. OPEX per barrel of oil equivalent stood at USD 1.29, up from USD 1.03 in 1QFY25 and USD 0.64 in the preceding quarter, which had benefitted from amortization reversals.
A major contributor to profitability was the sharp 85% decline in exploration costs, which dropped to Rs1.1 billion from a high base last year when the company incurred a dry well charge. POL continued seismic exploration during the quarter in the Ikhlas Exploration Licence and Pariwali Development & Production Lease.
Meanwhile, other income fell 50% year-on-year and 44% quarter-on-quarter, attributed to lower interest earnings amid declining policy rates and exchange losses caused by the rupee’s appreciation. The company’s effective tax rate stood at 33%, down from 45% in the same period last year and 25% in the previous quarter.
Analysts noted that the strong bottom-line growth despite weaker sales reflects effective cost control and lower exploration expenses, positioning POL for steady earnings momentum in the coming quarters.
