IGI Securities Limited – Day Break

Karachi, April 13, 2018 (PPI-OT): Oil and Gas Exploration Companies – E and P sector earnings to increase by +38%YoY to PKR 40.47bn in 3QFY18

IGI E and P universe earnings are expected to decline by +38%YoY in 3QFY18 to PKR 40.47bn compared to PKR 29.36bn in the same period last year.

Pakistan Oilfields Limited’s (POL) board meeting is scheduled on 16rd Apr-18 to announce financial result for 3QFY18, where we expect the Company to post earnings of PKR 3.44bn (EPS: PKR 14.52) up by +22%YoY. We expect Mari Petroleum Company Limited (MARI) to post earnings of PKR 4.21bn (EPS: PKR 38.21) up by +2.5xYoY. We expect Pakistan Petroleum Limited (PPL) to post earnings of PKR 12.10bn (EPS: PKR 6.14) up by +66%YoY. We expect Oil and Gas Development Company Limited (OGDC) to post earnings of PKR 20.72bn (EPS: PKR 4.82) up by +18%YoY.

We maintain ‘BUY’ call on MARI with our Dec-18 target price of PKR 2,094/share offering +37.6% upside from last close. We have a ‘HOLD’ call on OGDC and PPL with our Dec-18 target price of PKR 185/share and PKR 236/share, respectively.