Oil companies earn extra profit in 2011
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LAHORE - On the back of incessant and rapid increase in prices of petroleum products in the country, the profitability of locally listed oil exploration and production companies has increased. During the first nine months of the current fiscal year, these companies’ profits went up by 26 per cent to Rs82.7b or $965 million as compared to Rs65.7 billion or $782 million in the same period of the last year, energy experts said.According to them, improved global economic outlook coupled with civil unrest in the Middle East and African region has rendered into hike in international crude oil prices. Which subsequently has reflected positively on the listed Exploration and Production sector’s profitability, during 9MFY11.
Furthermore, ramp-up in the production from Tal and Naspha blocks have also played a key role, which compensated the decline in production of other major fields, they added.
During 9MFY11, sector’s top-line rose by a significant 21 percent to Rs202.8 billion primarily on the back of favorable oil price movement. During 9MFY11, sector net realized oil prices increased by 12.7 percent to $66.8 per barrel, while net realized gas prices stood at $2.1 per mmcf, up 12.4 percent compared to the same period last year.
In addition, enhanced production from Tal and Naspha blocks also mitigated the decline in production from other fields. Overall, listed E&P sector’s oil and gas production was increased by 3.8 percent and 3.5 percent respectively.
Furthermore restricted growth in sector’s operating expenses along with higher other income also supported the bottom-line. Average operation cost per BOE (barrels of oil equivalent) rose by a mere 7 percent to $4.5 per barrel while other income grew by a significant 25.4 percent to Rs7.7 billion, during the period under-review.
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