Pakistan Oilfields Limited (POL) reported a net profit of Rs 5.4 bn (EPS: 19.13), up 2.1 times YoY, as Razgir gas output begins and offshore exposure is held in check.

Pakistan Oilfields Limited (POL) posted a net profit of Rs 5.4 bn in the year ended June 30, 2025 (EPS: 19.13), representing a more than two-fold increase compared with the prior year.
The rise comes amid the commencement of production from the Razgir field, with current output rising to 20-25 mmcfd and a targeted capacity of 30 mmcfd after plant enhancements due for completion by end-2025.

Management noted that third-party allocation of Razgir gas allows the company to realise a 16% premium over the PP2012 pricing regime for the field.

In its upstream operations during FY25, POL produced 1.6 million barrels of oil and 19,362 mmcf of gas, down 6% and 14% respectively. The decline in gas was largely attributed to curtailment at the Tal Block, where management estimates roughly 90-95 mmcfd of gas and 5-7% of oil production was impacted—though POL-operated fields remained unaffected.

Receivables remain a key issue: POL’s overdue dues from Sui Northern Gas Pipelines Limited (SNGPL) stand at around Rs 18 bn, although management reports that SNGPL has begun settling recent invoices and is in discussions to clear the backlog.

Read More: OGDCL Receives Rs7.7B Dues

On exploration and licensing, POL said it is steering clear of high-risk offshore ventures unless prospects are exceptionally strong. Onshore, the company has completed 3D seismic acquisition in the Hisal and Taung blocks; drilling is ongoing at the Gurgalot block; a sidetrack at Jhandial-2 is near completion; drilling at Jhandial-4 is expected to spud in 2Q FY26.

In a recent bidding round, POL secured the Jherruk block (100%) and a 30% interest in the Chah Bali exploration licence (with OGDC as operator). It also signed agreements with the government for the Multanai block (100% share) and Saruna West block (40% share).

On the windfall levy case, management confirmed that no revenue has yet been booked while the matter is still in court.

Topline analysts maintain a “BUY” rating on POL, noting that at current levels the stock trades at estimated FY26E/FY27F P/E multiples of 6.9x and 5.6x — suggesting attractive valuation for an E&P company backed by new production upside and receivables recovery prospects.