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ANNUAL FINANCIAL REVIEW
Analysis of Statement of Profit or
Loss
Sales
Net sales decreased by 12.51 %. Volume variance
and Price Variance is negative by Rs 4,949 million
and Rs 523 million respectively. Price variance
has two components, one is exchange rate which
is positive by Rs 5,646 million (decline in Rupee
against US $ from Rs 139.18 to Rs 158.54 per US $)
and the other is price variance which is negative
by Rs 6,169 million. Sales volumes of Crude Oil,
Gas and POLGAS decreased by 12.87%, 8.89 % and
10.98%, respectively, as compared to corresponding
period mainly due to COVID 19 lockdown as TAL
block production remained shut down. Production
also decreased due to annual turnaround of MOL
plants, (MGPF ATR 15
th
to 19
th
July 2019) and
CPF (September 2019). Tolanj West-1 was shut
in September 2019 to October 2019 to carry out
process built up survey. Crude Oil and POLGAS
prices decreased by 22.26% and 0.58% respectively,
while Gas price increased by 13.94% as compared to
corresponding period.
Cost of sales
Cost of sales decreased by 13.3% to Rs 15,827
million (2019: Rs 18,258 million), mainly because of
lower operating cost, amortization and lesser royalty
paid on decreased sales during the year.
Exploration costs
Exploration costs decreased by 31.4% to Rs 1,405
million (2019: Rs 2,049 million) as last year dry and
abandon well cost of Mamikhel deep-1 amounting
to Rs 645 million and Hisal amounting to Rs 1,033
million was charged as against nil this year.
Other income
Other income decreased by Rs 3,828 million
mainly consisted of exchange gain decrease
by Rs 3,336 million due to less depreciation
of rupee against US $ as compared to last
corresponding period. Dividend from subsidiary
& associated companies is lower by Rs 308
million as compared to last corresponding
period. Crude transportation income decreased
by Rs 77 million mainly due to decrease in
throughput. Gas processing fee decreased
by Rs 45 million, because of lower quantity of
Ratana gas processed. Sale of stores and scrape
decreased by Rs 56 million.
The above decreases were offset by increases
of Rs1,210 million due to income from bank
deposits increased by Rs1,056 million due to
higher rate was earned against bank deposits.
Dividend on financial assets increased by Rs9
million. Rental income increased by Rs95 million
as compared to last period. Profit on sales
of property, plant and equipment increased
by Rs11 million. Fair value adjustment on
investments classified as fair value through
profit or loss increased by Rs39 million. Thus,
making a net decrease of Rs2,618 million i.e.
by 6.5%.
Taxation
The decrease is mainly attributable to addition in
development and exploration assets of Rs6.2 billion
in current Period. Whereas deferred tax liability has
increased due to development and exploration of
assets has increased as compared to the last period.
Further, in last period super tax was provided for
which is nil in current period.
Profit for the year
Profit after tax decreased by 2.9% to Rs16,376
million (2019: Rs16,872 million).
Analysis of Statement of
Financial Position
Non-Current Assets:
During the period, the additions to Property,
Plant & Equipment was Rs543 million (2019:
Rs 736 million). During the period development
cost increased by Rs 3,472 million mainly due to
addition of Rs 6 million at Balkassar, Rs 708 million
at Pindori, Rs 1,666 million at Jhandial, Rs 464
million at Adhi, Rs 443 million in Adhi South and
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PAKISTANOILFIELDS LIMITED