Basic HTML Version
The year under review had to face serious
challenges of COVID 19, consequential lock downs
and slow down of economic activity. I am glad that
the management and the Board of your company
successfully faced these challenges allowing only
minimum adverse impact on the operating results
of the company. Due to efforts of the management
and the guidance of the Board, the company earned
profit after tax of Rs16.376 billion during the year
ended June 30, 2020, which is only 2.9% lower than
that of previous year. This decline was due to lower
oil prices and the pandemic. The company continued
its core activities of exploration and development
during the year with some successes particularly at
Mamikhel South.
The company’s Board comprised of seven directors
out of whom two were independent, three were non
executive and two were executive directors. The
directors had rich experience drawn from different
fields like petroleum, finance, corporate sector and
regulations. I would like to express my profound
appreciation for the contribution made by them.
The Board provides strategic direction to the
management and fulfills its fiduciary responsibilities
with a sense of commitment. During the pandemic,
the Board remained engaged with the management
which helped it to meet the exceptional and
unforeseen challenges. During the year, five
board meetings were held. The Board has fulfilled
all its mandatory responsibilities including
ensuring compliance with all legal and regulatory
requirements for the Company. The Board has
constituted Audit and Human Resource and
Remuneration Committees. These committees
provided valuable input and assistance to the
Board. The Audit Committee particularly focused on
detailed review of financial statements and internal
controls.
Best practices of corporate governance having been
embedded into the Company’s culture to maintain
highest level of professionalism and business
conduct. An annual evaluation of performance of the
Board, members of the Board and its Committees
was carried out with the help of a formal and
effective mechanism. On the basis of the feedback
received through this mechanism overall role of the
Board has been found to be effective.
A new discovery at Mamikhel South has been
added in the discoveries of TAL Block, it will be
evaluated and appraised on fast track basis. The
Company is continuously investing in seismic data
acquisition, processing and interpretation. During
the year, 3D/2D Seismic data acquisition and
processing has been completed at TAL and Gurgalot
blocks. The decision of new wells will be based on
interpretations of the data.
Presently, two development wells are under testing.
In the year 2020-21 two exploratory wells will be
spudded. The Company is investing a substantial
amount to increase its reserve base and with the
Grace of Allah we are pretty much hopeful to get
new successes.
We are driven by our vision to be the leading oil and
gas exploration and production company of Pakistan
with ever increasing proven hydrocarbon reserves
and continuous and improved production. As we
move forward, we have a number of factors in our
favor; the strength of our balance sheet, our strong
cash generation, our expertise and most of all, the
dedication and will of our employee.
On behalf of the Board, I would like to acknowledge
with thanks the contributions made by the both
management and non-management staff, regulatory
authorities and various Government functionaries.
Without their support these results would not have
been possible.
I would also like to thank all the shareholders for their
continued support.
I hope and pray that the company may maintain
momentum of growth in the future years.
Laith G. Pharaon
Chairman Attock Group of Companies
Rawalpindi
August 26, 2020
CHAIRMAN’S REVIEW
41
PAKISTANOILFIELDS LIMITED