KARACHI: Pakistan’s listed exploration and production companies reported a 43% rise in combined profit for the first quarter of fiscal 2027, driven mainly by higher oil and gas prices, according to Topline Research.
The sector earned 113.4 billion rupees in the July-September quarter. Profit fell 47% from the previous quarter.
Net sales grew 32% from a year earlier to 279.1 billion rupees but dropped 9% from the prior quarter.
Topline attributed the annual gain mainly to a 26% rise in international oil prices. Arab Light crude averaged $90 a barrel in the quarter, compared with $71.50 a year earlier. Oil prices fell 13% from the previous quarter, which accounted for the sequential decline in sales.
The Oil and Gas Regulatory Authority also raised wellhead gas prices for select fields by about 8% to 10% for the first half of fiscal 2027.
Exploration costs rose 45% from a year earlier but fell 61% from the previous quarter to 10.2 billion rupees. One dry well, Ishraq X-1, operated by Pakistan Petroleum Ltd., was reported during the quarter. The quarterly decline reflects two dry wells reported in the prior quarter, Chak-203 and Saidpur, both operated by Oil and Gas Development Co. Ltd.
The sector set aside 52.1 billion rupees for taxes, an effective tax rate of 31.5%. That compares with 44.6 billion rupees, or 35.9%, a year earlier. In the previous quarter, the sector booked a reversal of 54.8 billion rupees after a Federal Constitutional Court decision on super tax levies.
The sector declared a first interim dividend of 26.9 billion rupees, up 31% from a year earlier. The payout ratio was 23.7%, compared with 25.7% a year earlier and 39.8% in the prior quarter. Mari Petroleum Co. Ltd. and Pakistan Oilfields Ltd. announce dividends twice a year.
Among individual companies:
OGDC’s profit rose 53% from a year earlier but fell 54% from the previous quarter. Topline cited higher sales and finance income and lower administrative costs. The company announced a cash dividend of 5 rupees per share, a 37% payout.
PPL’s profit rose 25% year over year and fell 33% from the prior quarter, despite higher exploration costs. Topline attributed the annual gain to higher sales and other income. The company announced a cash dividend of 2 rupees per share, a 22% payout.
Mari Petroleum’s profit rose 36% year over year but fell 42% from the previous quarter. Sales rose 24% from a year earlier, and the effective tax rate was a low 23%. Exploration costs fell to 2.1 billion rupees, down 7% from a year earlier and 75% from the prior quarter.
Pakistan Oilfields’ profit rose 51% year over year and fell 34% from the previous quarter. Sales grew 26% from a year earlier and fell 18% from the prior quarter. Other income rose 58%, helped by higher investment income.
