Pakistan Oilfields Limited (POL) 3Q earnings preview

Pakistan Oilfields Limited has just released an update on Pakistan Oilfields Limited’s previous quarter’s financial results. Here are the important points from their earnings preview.

Expected Earnings:

Pakistan Oilfields Limited (POL) is set to announce its earnings for the third quarter of fiscal year 2024 (3QFY24E) on Thursday. Analysts anticipate the company to report earnings of PkR 7.99 billion, equivalent to an Earnings Per Share (EPS) of PkR 28.1 for the quarter. While this represents a marginal change on a quarterly basis, it signifies a significant decrease of 51% when compared to the same period last year.

Factors Influencing Earnings:

The anticipated decline in earnings on a yearly basis can be attributed to the absence of exchange gains compared to the same period last year. However, it’s noteworthy that the company is expected to incur exchange losses on foreign exchange deposits during this quarter, amounting to PkR 880 million, compared to PkR 1.41 billion in the preceding quarter.

Hydrocarbon Production:

In terms of hydrocarbon production, analysts expect stability in both oil and gas output during the period. Oil production is projected to remain at 4.81 thousand barrels per day (kbpd), while gas output is expected to stabilize at 65 million cubic feet per day (mmcfd). These levels are consistent with those of the previous quarter.

Analyst Recommendation:

Despite the anticipated decline in earnings, analysts maintain a ‘Buy’ rating on POL’s stock. They have set a Target Price (TP) of PkR 600 per share by December 2024. Additionally, the stock is expected to offer dividend yields of approximately 19% and 18% for fiscal years 2024 and 2025, respectively.

Conclusion:

In conclusion, Pakistan Oilfields Limited is expected to announce its quarterly earnings with relatively stable production levels but a notable decrease in earnings compared to the previous year. However, analysts remain optimistic about the stock’s performance, recommending it as a ‘Buy’ with promising dividend yields and a positive long-term outlook.

Disclaimer:

The information in this article is based on research by AKD Research. All efforts have been made to ensure the data represented in this article is as per the research report. This report should not be considered investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.