POL FY25 Profit Falls 38% to Rs85.19/Share
Staff Report
POL posted a 9% QoQ increase in earnings to Rs26.19/share in 4QFY25, taking FY25 earnings to Rs85.19/share, down 38% YoY.
Earnings exceeded expectations due to a lower effective tax rate of 25% in 4QFY25, compared to 28% in 3QFY25 and 4QFY24.
Exploration costs surged sixfold to Rs11bn in FY25, driven by a dry well, Balkassar Deep-1, recognized in 1QFY25, along with increased seismic acquisition in blocks such as Kirthar South and Ikhlas EL.
Royalty expenses dropped 22% YoY in 4QFY25 due to lower net sales, while the royalty rate remained constant at 11% of sales.
Operating expenditures fell 59% YoY to Rs1.4bn in 4QFY25, reflecting lower sales volumes caused by RLNG curtailment.
Other income fell 31% YoY to Rs3.3bn in 4QFY25 due to lower interest rates, though it rose 16% QoQ on PKR depreciation-led exchange gains.Weekly Roundup: Rupee Steady, Oil Prices Fall
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The company announced a cash dividend of Rs50/share in 4QFY25, taking the full-year payout to Rs75/share, with an 88% payout ratio (vs. 69% in FY24).
POL maintains a BUY rating, trading at FY25A/FY26F P/E multiples of 7.5x/8.0x.
