• Login
  • Home
  • Pakistan
  • International News
  • Business
  • Sports
  • Entertainment
  • Opinion
No Result
View All Result
  • Home
  • Pakistan
  • International News
  • Business
  • Sports
  • Entertainment
  • Opinion
No Result
View All Result
Time of Pakistan
No Result
View All Result
Home Business Markets

Pakistan Oilfields Ltd – EPS of PKR21.92 likely in 1HFY11

ToP by ToP
January 20, 2011
in Markets
0
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

Robust 2Q earnings to take 1HFY11 EPS to PKR21.92: POL’s board meeting to consider 1HFY11 results will be held on January 28, 2011. We expect the company to post profit after tax of PKR5.19bn (EPS: PKR21.92) for 1HFY11, up 56% YoY. 2QFY11 EPS will likely clock in at PKR12.48, up 56% YoY. We also expect the company to announce DPS of PKR12 with half yearly results.

Strong volume growth; realized prices to fall due to higher gas volumes: Despite rising by a mere 4% QoQ, 2QFY11 volumes for POL shall be up a staggering 41% on YoY basis due to low base effect (2QFY10 had only partial impact of Manzalai expansion). Realized price, though up  4% QoQ, shall be 4% lower on YoY basis due to higher share of gas in revenue mix.

Other income to jump owing to dividend income from NRL and APL: 2QFY11 EPS shall form 29% of our FY11E EPS, as POL shall realize 91% of its FY11E dividend income during the quarter. We expect 2QFY11 other income to rise 30% YoY.

Exploration cost could rise QoQ: While we expect 2QFY11 exploration cost to rise by 43% QoQ due to higher seismic acquisition, it shall still be 71% lower on YoY basis.

Maramzai commences; oil and gas flows from Tal rise 20%/10% WoW: 1st week flows indicate production from Maramzai could be in the vicinity of 40mmcfd gas and 1500bpd oil, 14% and 22% higher than our respective oil and gas production assumption from the well. We, however, maintain our estimates for now.

Strong volume growth; realized prices to fall due to higher gas volumes

Despite rising by a mere 4% QoQ, 2QFY11 volumes for POL shall be up a staggering 41% on YoY basis due to low base effect as 2QFY10 had only partial impact of Manzalai expansion.

Cumulative oil and gas production from Tal during 2QFY11 is estimated at 305mmcfd gas and 7408bpd oil, 1.1x and 1.3x higher on YoY basis. However, due to gas heavy Tal expansion, share of gas in total revenues is estimated to have increased from ­­29% in 2QFY10 to 35% during 2QFY11, dragging average realized price by 4% YoY during 2QFY11, despite 12% higher oil prices.

Other income to jump owing to dividend income from NRL and APL

POL will likely book its share of FY10 final dividend from NRL (PKR400mn) and APL (PKR81mn) during 2QFY11 as a result of which 91% of FY11E dividend income would be realized during the quarter. As a result, 2QFY11 EPS shall form 29% of our FY11E EPS. We expect 2QFY11 other income to rise 30% YoY.

Exploration cost could rise QoQ

We expect 2QFY11 exploration cost to rise by 43% QoQ due to higher seismic acquisition. POL acquired 113 line km of 2D seismic during 2QFY11 as opposed to a mere 7 line km during the previous quarter. 2QFY11 exploration cost shall still be on the lower side – down 71% YoY – and comprise 9% of our full year exploration cost estimate as no dry well shall be expensed during the quarter. 

Maramzai commences; oil and gas flows from Tal rise 20%/10% WoW

As per the production data for the week ending January 11 released yesterday, volumes from “Manzalai + Manzalai CPF” – which reports production from all Manzalai wells, Maramzai, and Mamikhel – rose by 35mmcfd gas and 1545bpd oil over the previous week. Comparison from a week earlier breeds an increase of 41mmcfd gas and 1556bpd oil, indicating production from Maramzai could be in the vicinity of 40mmcfd gas and 1500bpd oil, 14% and 22% higher than our respective oil and gas production assumption from the well. While we maintain our estimates for now, we eye a potential upside of 1-2% to our FY11-13 EPS, incase Tal block sustains the latest reported production levels, which were 2% higher than our 2HFY11 estimates for gas and 7% higher for oil.

Economic & Political News

Cement prices rise to PKR340/ bag

Cement prices in the southern part of the country have increased by PKR10/ 50kg bag. An industry official revealed that the latest price hike has taken average cement prices to PKR340/ bag in Karachi and other cities in Sindh. However, prices remained unchanged in Punjab, Khyber-Pakhtunkhwa and adjoining areas. “The average price of a cement bag in Punjab is PKR315 to PKR320 right now,” a representative of Pakistan Cement Manufacturers Association.  On Wednesday, coal prices jumped by about 5% in international trade to reach USD138.5/ ton.
Analyst Certification:
The research analyst(s) denoted AC on the cover of this report, primarily involved in the preparation of this report, certifies that (1) the views expressed in this report accurately reflect his/her personal views about all of the subject companies/securities and (2) no part of his/her compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.
Disclaimer

The report has been prepared by Elixir Securities Pakistan (Pvt.) Ltd and is for information purpose only. The information and opinions contained herein have been compiled or arrived at based upon information obtained from sources, believed to be reliable and in good faith. Such information has not been independently verified and no guaranty, representation or warranty, expressed or implied is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. Descriptions of any company or companies or their securities mentioned herein are not intended to be complete and this document is not, and should not be construed as, an offer, or solicitation of an offer, to buy or sell any securities or other financial instruments.
Research Dissemination Policy
Elixir Securities Pakistan (Pvt.) Ltd. endeavors to make all reasonable efforts to disseminate research to all eligible clients in a timely manner through either physical or electronic distribution such as mail, fax and/or email. Nevertheless, not all clients may receive the material at the same time.
Company Specific Disclosures
Elixir Securities Pakistan (Pvt.) Ltd. may, to the extent permissible by applicable law or regulation, use the above material, conclusions, research or analysis in which they are based before the material is disseminated to their customers. Elixir Securities Pakistan (Pvt.) Ltd., their respective directors, officers, representatives, employees and/or related persons may have a long or short position in any of the securities or other financial instruments mentioned or issuers described herein at any time and may make a purchase and/or sale, or offer to make a purchase and/or sale of any such securities or other financial instruments from time to time in the open market or otherwise. Elixir Securities Pakistan (Pvt.) Ltd. may make markets in securities or other financial instruments described in this publication, in securities of issuers described herein or in securities underlying or related to such securities. Elixir Securities Pakistan (Pvt.) Ltd. may have recently underwritten the securities of an issuer mentioned herein.
Other Important Disclosures
Foreign currency denominated securities is subject to exchange rate fluctuations which could have an adverse effect on their value or price, or the income derived from them. In addition, investors in securities such as ADRs, the values of which are influenced by foreign currencies effectively assume currency risk. Foreign currency denominated securities is subject to exchange rate fluctuations which could have an adverse effect on their value or price, or the income derived from them. In addition, investors in securities such as ADRs, the values of which are influenced by foreign currencies effectively assume currency risk.

Contributed By

Previous Post

India court alarm over ‘theft of national money’

Next Post

PPP’s Overseas Committee calls on the President

ToP

ToP

Related Posts

Pfizer, AstraZeneca vaccine one dose cuts household spread 50%: study
Markets

Pfizer, AstraZeneca vaccine one dose cuts household spread 50%: study

by Jameel Ahmad
July 14, 2021
Russian Vaccine gets Emergency use Authorisation
Markets

Pakistan Among First Countries to Market Coronavirus Vaccine Shots Privately

by Jameel Ahmad
February 15, 2021
Inflation
Markets

Pakistan Inflation at Lowest Level in two Years

by Jameel Ahmad
February 2, 2021
Experts hope for a Reset in US-Pakistan Ties
Markets

Experts hope for a Reset in US-Pakistan Ties

by Jameel Ahmad
January 13, 2021
Oil Crisis Probe calls for Disbanding Ogra
Markets

Oil Crisis Probe calls for Disbanding Ogra

by Jameel Ahmad
December 15, 2020
Cabinet set to Take ‘policy decision’ on Ties with France
Markets

Cabinet set to Take ‘policy decision’ on Ties with France

by Jameel Ahmad
November 30, 2020
UAE Visa Suspension Related to Covid: FO
Markets

Fears of Pakistan Losing Job Market to India grow after UAE Visa Ban

by Jameel Ahmad
November 26, 2020
Next Post

PPP’s Overseas Committee calls on the President

Popular Stories

  • Ron Williams Bodybuilding Champion

    Bodybuilding Champion Found Happiness in God, not Competition

    0 shares
    Share 0 Tweet 0
  • 12-year-old British Pakistani boy makes £290,000 during summer holidays

    6800 shares
    Share 0 Tweet 0
Time of Pakistan

About Times Of Pakistan

kralbetbetturkeyikimislibahis1xbetm.infohipas.infohttps://www.wiibet.com/restbetcdn.com

Other Categories

  • Beautiful Pakistan
  • Fashion News
  • Funny News
  • Viral Videos
  • Weird News

Recent Posts

  • 11th J.A. Zaman Memorial Open – Powered by Gem Golfers
  • Imran Khan and Bushra Bibi Sentenced to Jail in £190 Million Case
  • World’s Largest Submarine Cable Arrives in Pakistan: Could This End Internet Woes?

Times Of Pakistan © 2024. Design & Developed by E2E Solution Providers.

No Result
View All Result
  • Home
  • Pakistan
  • International News
  • Business
  • Sports
  • Entertainment
  • Opinion

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In