IGI Securities Limited – Day Break

Karachi, August 15, 2018 (PPI-OT): Oil and Gas Exploration Companies – E and P Sector Earnings to rise during 4QFY18 despite being marred by dry well costs

IGI E and P universe earnings are expected to inch up by +1%YoY in 4QFY18 to PKR 38.9bn compared to PKR 38.4bn in the same period last year. Excluding retrospective impact recorded by PPL in respect of Sui field gas price revision, sector earnings are estimated to rise by +4%YoY.

We expect Pakistan Petroleum Limited (PPL) to post earnings of PKR 10.74bn (EPS PKR 8.39) down by 33%YoY compared to PKR 4.07bn (EPS PKR 12.48) in the same period last year.

We estimate Mari Petroleum Company Limited’s (MARI) to register earnings growth of +84%YoY to PKR 5.19bn (EPS PKR 47.12) compared to PKR 2.83bn (EPS PKR 25.66) in the same period last year.

We expect Oil and Gas Development Company Limited (OGDC) to post earnings of PKR 20.02bn (EPS PKR 4.65) up by +24%YoY compared to PKR 16.21bn (EPS PKR 3.77) in the same period last year.

We expect Pakistan Oilfields Limited (POL) to report earnings of PKR 2.93bn (EPS PKR 12.36) up by +32%YoY compared to PKR 2.21mn (EPS PKR 9.35) in the same period last year.