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Directors' Report

In the name of ALLAH, The Most Gracious, The Most Merciful
Assalam-u-Alaikum!

The Board takes pleasure in presenting a brief review of the operations and financial results of the
Company for the 1st quarter ended September 30, 2021.

Financial results
During the period, the Company has made a profit after tax of Rs. 5,258 million (September 30, 2020:
Rs. 3,629 million), which is higher by 44.9% as compared to the corresponding period last year. The
profit translates into basic and diluted earnings per share of Rs. 18.52 (September 30, 2020: Rs.
12.78). The increase in profit is mainly due to increase in average price of crude oil by 69.1%, increase
in rupee dollar parity and exchange gain on bank deposits netted off to some extent by decrease in
sales volumes of crude oil by 11.3%, gas by 9.1% and LPG by 14% in comparison to corresponding
period last year. Production volume of crude oil &, gas decreased by 8.76%, and 9.2%, respectively
while LPG production volumes increased by 2.74% in comparison to corresponding period last year.
During the period, the Company made a Consolidated profit after tax of Rs. 4,732 million (September
30, 2020: Rs. 3,700 million) which translate into consolidated earnings per share of Rs. 16.65
(September 30, 2020: Rs. 13.05).
Production
The following is a comparison of production from the Company’s own fields, including proportionate
share from all operated and non-operated joint ventures:
Three months ended
Sep 30, 2021 Sep 30, 2020
Crude Oil/Condensate US Barrels 537,209 588,783
Gas Million Cubic Feet 6,844 7,541
LPG Metric Tonnes 14,456 14,071
Sulphur Metric Tonnes 137 48
Solvent Oil US Barrels 5,496 4,367

The Company's share in production, including that from joint ventures, for the period under review
averaged 5,839 barrels per day (bpd) of crude, 74.4 million standard cubic feet per day (mmscfd) of
gas, 157.14 metric tonnes per day (MTD) of LPG, 1.49 MTD of sulphur and 60 bpd of solvent oil.

Exploration and development activities
Producing fields
At Balkassar lease (100% owned by POL), Balkassar Deep-2 is in the planning phase as replacement
of Balkassar Deep-1.
At Pindori Lease (operated by POL with a 35% share), evaluation on the prospectivity of Chorgali
formation in the field is in progress which will be matured after integration of on-going 3D Seismic Data
Re-processing.
At Tal block, (operated by MOL, where POL has a pre-commerciality share of 25%), Mardankhel-4
location has been approved.
At Adhi field (operated by Pakistan Petroleum Limited, where POL has 11% share), Adhi South-5 and 6
have been planned in the financial year 2021-22.
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