Report By JS Global Capital Limited
Pakistan Oilfields Limited (POL) board meeting is scheduled for August 13, 2015 to announce FY15 result, where we expect POL’s earnings to clock in 29% YoY lower at Rs38.71/share.
We anticipate revenues to drop by 13% YoY on the back of 33% YoY lower Arab Light crude oil prices, even though Oil and LPG production is expected to grow by 4% YoY and 99% YoY respectively.
In 4Q alone, we expect EPS to clock in 11% QoQ lower at Rs7.57, where 16x higher exploration costs because of an abnormally low base of 3QFY15 are expected to keep earnings growth in red.
Alongside result, we expect final cash payout of Rs25.0/share taking cumulative dividend in FY15 to Rs40.0/share.
We reiterate our liking for POL (Buy – TP Rs559), where we flag its highly attractive forward 12-month dividend yield of almost 20%.
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