In FY23, the company achieved an impressive PAT of PKR 36.4bn (EPS: PKR128.42/sh), marking a significant upside of 40.55% YoY compared to PKR 25.9bn (EPS: PKR91.37/sh) in SPLY. Similarly, on a consolidated basis, the company achieved a noteworthy profit after tax of PKR 37.3bn (EPS: PKR131.29/sh) against the PAT of PKR26.8bn (EPS: PKR94.28/sh) in SPLY.
The significant increase in profitability can be ascribed to the positive impact of the Rupee/US$ exchange rate on oil and gas prices, coupled with gains resulting from favorable currency exchange rates on financial assets, along with augmented income generated from bank deposits due to favorable interest rates.
The company mainly focused on exploration and development throughout the year. The exploration expenses, totaling PKR6.72 billion, covered the drilling of two dry wells and seismic acquisition/processing. Moreover, the drilled three developed wells and two exploratory wells, demonstrating its dedication to innovation and advancement, despite the challenges.
The management highlighted that the investments in seismic data have led to significant advancements. It completed 3D Seismic data acquisition at Hisal and Pindori blocks, with ongoing data processing, showcasing our commitment to utilizing technology for informed decisions.
The Company is currently acquiring seismic data in the Nareli Block and plan to expand to Langrial, North Dhurnal, and Turkwal blocks to improve prospects.
Tolanj West-2, a successfully drilled well, has tested three formations and is now in production. It currently yields approximately 18 million cubic feet of gas per day and around 19 barrels of oil per day.
At Tal block an exploratory well Razgir has been approved by the Joint Venture Partners and it is expected to start in 1QFY24.
In FY23, production of crude oil and gas were down by by 9% YoY and 8% YoY, respectively. The production of LPG was also lower by 4% YoY. The decline is largely attributed to natural depletion of reservoirs. However, the management is optimistic to enhance production efficiency and that will remain to be a key part of company’s strategy.
Looking ahead to the FY24, the management is committed towards excellence. The company also plans to start two exploratory and six development wells, with a significant investment to grow its reserve base.
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