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Vision, Mission 02
Corporate Information 03
Directors’ Review 04
08
Financial Information
Balance Sheet 10
Profit and Loss Account 12
Statement of Comprehensive Income 13
Cash Flow Statement 14
Statement of Changes in Equity 15
Notes to the Financial Information 16
Consolidated Financial Information 25
Balance Sheet 26
Profit and Loss Account 28
Statement of Comprehensive Income 29
Cash Flow Statement 30
Statement of Changes in Equity 31
Notes to the Consolidated Financial Information 32
Exploration & Development Interest 41
Contents
VISION
MISSION
To be the leading oil and gas exploration and production Company of Pakistan with the highest proven hydrocarbon reserves and production, and which provides optimum value to all stakeholders.
We aim to discover and develop new hydrocarbon reserves and enhance production from existing reserves through the application of the best available technologies and expertise.
In achieving our aim, we will maximize the return to our shareholders, fully protect the environment, enhance the wellbeing of our employees and contribute to the national economy.
02
Corporate InformationDirectors
Audit Committee
Human Resource and Remuneration (HR &R) Committee
Mr. Laith G. PharaonChairman Attock Group of CompaniesAlternate Director - Mr. Bilal Ahmad Khan
Mr. Wael G. PharaonAlternate Director - Mr. Babar Bashir Nawaz
Mr. Sajid Nawaz
Mr. Abdus Sattar
Mr. Tariq Iqbal Khan
Mr. Nihal Cassim
Mr. Shuaib A. MalikChairman & Chief Executive
Mr. Abdus SattarChairman
Mr. Babar Bashir Nawaz Member
Mr. Nihal CassimMember
Mr. Tariq Iqbal KhanMember
Mr. Bilal Ahmad Khan Member
Mr. Babar Bashir NawazChairman
Mr. Shuaib A. MalikMember
Mr. Abdus SattarMember
Mr. Bilal Ahmad KhanMember
Company Secretary / CFO
Auditors & Tax Advisors
Legal Advisors
Registered Office
Shareholder Enquiries
Quarterly Report
Khalid Nafees
A.F. Ferguson & Co. Chartered Accountants
Khan & Piracha
Ali Sibtain Fazli & Associates
Pakistan Oilfields Limited P.O.L. House, Morgah, Rawalpindi.Telephone: +92 51 5487589-97 Fax: + 92 51 5487598-99 E-mail: [email protected] Website: www.pakoil.com.pk
For enquiries about your shareholding, including information relating to dividends or share certificates, please: E-mail to: [email protected] orWrite to: The Company Secretary,
Pakistan Oilfields Limited P.O.L. House, Morgah, Rawalpindi, Pakistan.
The quarterly report can be downloaded from the Company’s website: www.pakoil.com.pkprinted copies can be obtained by writing to:The Company Secretary, Pakistan Oilfields Limited P.O.L. House, Morgah, Rawalpindi,Pakistan.
03
Directors’ Report
In the name of ALLAH, The Most Gracious, The Most Merciful
Assalam-u-Alaikum!
The Directors have pleasure in presenting a brief review of the operations and financial results of the Company for the nine months ended March 31, 2018.
During the period, the Company has made a profit after tax of Rs. 7,867.9 million (March 31, 2017: Rs. 7,465.6 million), which is higher by 5.4% as compared to the corresponding period last year. The profit translates into earnings per share of Rs. 33.26 (March 31, 2017: Rs. 31.56 per share). Increase in production volume of crude oil, gas and LPG increase by 9.03% and 13.67% and 8.89% respectively in comparison to corresponding period last year. Average crude oil price increase by 21.5 % in comparison to corresponding period last year. During the period the Company made a consolidate profit after tax of Rs. 7,892.8 million (March 31, 2017: Rs. 7,580.1 million) which translate into consolidated earnings per share of Rs. 33.31 (March 31, 2017: Rs. 31.93 per share).
The following is a comparison of production from the Company's fields including proportionate share from all operated and non-operated joint ventures:
Crude Oil/Condensate (US Barrels) 1,843,921
Gas (Million Cubic Feet) 21,040
LPG (Metric Tonnes) 43,566
Sulphur (Metric Tonnes) 426
Solvent Oil (US Barrels) 14,250
The Company's share in production, including that from joint ventures, for the period under review averaged 7,338 barrels per day (bpd) of crude, 87.29 million standard cubic feet per day (mmscfd) of gas, 59 bpd of solvent oil, 173.12 metric tonnes per day (MTD) of LPG and 1.87 MTD of Sulphur.
At Balkassar field (100% owned by POL), 3D Seismic Data acquisition of 191.25 Square kilometers has been completed. 3D seismic data processing is in progress.
At Joyamair field (100% owned by POL), Joyamair Deep-1 (an exploratory well) has been spuded on October 14, 2017 and drilled down to target depth of 8,776 ft. Presently, the well is under testing phase.
At Khaur Lease (100% owned by POL), Khaur North-1 (an exploratory well) was spuded on November 08, 2017, drilled down to 14,586 ft and declared well target depth. Preparation is underway for taking well logs and perform well testing procedures.
Financial results
Production
2,010,501
23,917
47,438
512
16,264
Exploration and development activities
Producing Fields
Nine months period ended
Mar. 31, 2018 Mar. 31, 2017
04
05
At Turkwal Lease (operated by POL with 67.37% share), 3D seismic acquisition is being planned over 125 square kilometers to explore the full potential of the area.
At Pariwali Lease (operated by POL with 82.50% share), reservoir simulation study has been completed. Based on study, workover on Pariwali-2 well has been decided in the last quarter of this financial year.
At Pindori Lease (operated by POL with a 35% share), Pindori-10 a development well to drain the remaining up-dip potential of the field has been approved. Acquisition of long lead items is in progress.
At TAL block (operated by MOL, where POL has a pre-commerciality share of 25%), Makori East-6 has been connected to production line on Feb 26, 2018 and presently producing 715 barrels of condensate per day and 2.078 million cubic feet of gas per day.
At Adhi field (operated by Pakistan Petroleum Limited, where POL has 11% share),
Simulation Study (Dynamic Model) of Adhi Field is in progress. Adhi-32 well has been approved.
Adhi-30: Well was spuded on May 28, 2017 and Drilled down to target depth. After frac job the well tested and produced 400 barrels of oil per day, 4 million cubic feet of gas per day with wellhead flowing pressure of 554 psi at 48/64” choke size and also connected to the production line.
Adhi-31: Well was spudded on March 31, 2018 and drilling down to 2,346ft is in progress. The target depth is around +/- 10,791ft.
Adhi South X-1 an exploratory well was spudded on June 30, 2017 and drilled down to target depth, tested and produced 1,550 barrels of oil per day and 2.6 millon cubic feet of gas per day with wellhead flowing pressure of 960 psi at 32/64” choke size. This is an oil discovery in the southern compartment of Adhi structure which will be evaluated for appraisal programme. The well will be connected after completion of production pipeline.
Jhal Magsi South field (operated by OGDCL, where POL has 24% share), installation of plant has been stopped as decision regarding laying of pipeline by SSGCL is not finalised.
At Ratana Field (operated by Ocean Pakistan Limited, where POL has 4.545% share), 3D seismic data acquisition of 376.86 square kilometers has been acquired and data processing is in process.
At Ikhlas block (operated by POL with an 80% share), Working on way forward of Ikhlas concession is in progress. Preparation of evaluation report of Domial Field, including Domial Deep prospectivity is in progress. Seismic Acquisition planning over Langrial prospect is in progress. Sesmic Acquisition planning over Langrial prospect is in progress. Presently, “Jhandial-1” is under evaluation and producing around 710 barrels of oil per day and 7.53 million cubic feet of gas per day.
At DG Khan block (operated by POL with a 70% share), last acquired 2D seismic data identified new leads consequently264 line kilometers infill 2D Seismic data was planned around 124 line kilometers has been acquired so far to firm up the identified leads.
At TAL block (operated by MOL where POL has a pre-commerciality share of 25%), 2D/3D seismic data interpretation is in progress to explore the possible deeper plays in TAL block. Acquisition of 870 sq.km of gravity survey over western part of Manzalai has been completed and interpretation is in progress.
Tolanj East-01 an exploratory well was spuded on April 27, 2017 drilled down to 16,096 ft (side tack-1). The target depth+/- 16,569 ft. Presently efforts are in hand to cure the losses.
Exploration Blocks
Mamikhel Deep-1 an exploratory well was spudded on December 16, 2017 and drilling down to 10,604 ft is in progress. The target depth is +/- 17,156 ft.
To explore deeper potential in the TAL block Location of Mamikhel South-1 has been approved. In-house 2D/3D seismic data interpretation is in progress to explore the additional plays in TAL Block.
At Gurgalot block (operated by OGDCL where POL has a 20% share), Gurgalot 3D seismic data acquisition is in progress, and so far 133 Square kilometers has been recorded out of 320 Square kilometers seismic data to cover all the mapped leads.
At Hisal block (operated by PPL where POL has a share of 25%), drilling of first exploratory well Misrial-X1 was spudded on January 31, 2018 and drilling down to 9,288ft is in progress. The target depth is around +/- 17,086ft. For evaluation of another prospect, 63.25 L.kms 2D infill seismic acquisitions have been planned.
The Board would like to extend its gratitude to all its stakeholders for their continuous support, which they have extended to Pakistan Oilfields Limited.
On behalf of the Board
Shuaib A. MalikChairman & Chief Executive
RawalpindiApril 16, 2018
Acknowledgement
06
10
Condensed Interim Balance Sheet (Unaudited)As at March 31, 2018
Note
Rupees ('000)Mar. 31, 2018 Jun. 30, 2017
SHARE CAPITAL AND RESERVES
5,000,000
2,365,459
4 26,945,164
2,153
29,312,776 NON CURRENT LIABILITIES
848,338
5 16,401,779
17,250,117
CURRENT LIABILITIES AND PROVISIONS
6 11,964,159
2,654,422
4,186,766
18,805,347
CONTINGENCIES AND COMMITMENTS 7
65,368,240
Authorised capital500,000,000 (June 30, 2017: 500,000,000)ordinary shares of Rs 10 each 5,000,000
Issued, subscribed and paid-up capital 2,365,459 236,545,920 (June 30, 2017: 236,545,920)ordinary shares of Rs 10 each
Revenue reserves 29,130,466
Fair value gain on available-for-sale investments 2,003
31,497,928
Long term deposits 846,958
Deferred liabilities 14,999,402
15,846,360
Trade and other payables 5,763,626
Unclaimed dividend 139,722
Provision for income tax 4,403,945
10,307,293
57,651,581
Note
Rupees ('000)Mar. 31, 2018 Jun. 30, 2017
FIXED ASSETS
8 9,521,511
9 13,529,136
10 3,281,345
26,331,992
LONG TERM INVESTMENTS IN SUBSIDIARYAND ASSOCIATED COMPANIES 11 9,615,603
OTHER LONG TERM INVESTMENTS 12 6,405
LONG TERM LOANS AND ADVANCES 15,084
CURRENT ASSETS
3,603,620
225,968
13 2,852,010
14 1,720,716
2,999,986
15 17,996,856
29,399,156
65,368,240
Property, plant and equipment 9,854,534
Development and decommissioning costs 13,372,854
Exploration and evaluation assets 1,884,356
25,111,744
9,615,603
6,255
17,639
Stores and spares 3,897,472
Stock in trade 221,893
Trade debts 3,292,966
Advances, deposits, prepayments and other receivables 1,306,481
Short term investments -
Cash and bank balances 14,181,528
22,900,340
57,651,581
The annexed notes 1 to 25 form an integral part of this condensed interim financial information.
11
DirectorAbdus Sattar
CFOKhalid Nafees
Chief ExecutiveShuaib A. Malik
12
Note
Nine months period endedThree months period ended
Rupees ('000)Mar. 31, 2018 Mar. 31, 2017Mar. 31, 2017Mar. 31, 2018
Condensed Interim Profit and Loss Account (Unaudited)For the nine months period ended March 31, 2018
SALES 9,489,924 23,651,999
(743,424) (1,665,147)
NET SALES 16 8,746,500 21,986,852
17 (2,390,500) (6,519,338)
(82,454) (229,379)(1,359,782) (2,450,342)
(801,619) (2,291,856)
(4,634,355) (11,490,915)
GROSS PROFIT 4,112,145 10,495,937
18 (275,059) (1,015,467)
3,837,086 9,480,470
(52,506) (142,441)
19 (543,457) (1,218,899)
20 (243,364) (635,858)
(839,327) (1,997,198)
2,997,759 7,483,272
21 740,896 2,305,858
PROFIT BEFORE TAXATION 3,738,655 9,789,130
22 (632,108) (1,921,230)
PROFIT FOR THE PERIOD 3,106,547 7,867,900
13.13 33.26
8,327,080 22,370,790
Sales tax (716,055) (1,954,864)
7,611,025 20,415,926
Operating costs (2,245,129) (6,362,346)Excise duty and development surcharge (70,376) (200,346)Royalty (668,711) (1,742,408)Amortisation of development anddecommissioning costs (542,969) (1,968,808)
(3,527,185) (10,273,908)
4,083,840 10,142,018
Exploration costs (246,352) (436,683)
3,837,488 9,705,335
Administration expenses (31,629) (102,569)
Finance costs (195,051) (584,829)
Other charges (241,635) (624,993)
(468,315) (1,312,391)
3,369,173 8,392,944
Other income 311,961 1,259,797
3,681,134 9,652,741
Provision for taxation (871,234) (2,187,123)
2,809,900 7,465,618
Earnings per share - Basic and diluted (Rs) 11.88 31.56
The annexed notes 1 to 25 form an integral part of this condensed interim financial information.
DirectorAbdus Sattar
CFOKhalid Nafees
Chief ExecutiveShuaib A. Malik
Profit for the period 3,106,547 7,867,900
Other Comprehensive Income for the period
Item that may be subsequentlyreclassified to profit or loss
- 150
TOTAL COMPREHENSIVE INCOME 3,106,547 7,868,050
2,809,900 7,465,618
Fair value adjustment on available-for-sale investments - net of tax - 170
2,809,900 7,465,788
The annexed notes 1 to 25 form an integral part of this condensed interim financial information.
13
For the nine months period ended March 31, 2018Condensed Interim Statement of Comprehensive Income (Unaudited)
Nine months period endedThree months period ended
Rupees ('000)Mar. 31, 2018 Mar. 31, 2017Mar. 31, 2017Mar. 31, 2018
DirectorAbdus Sattar
CFOKhalid Nafees
Chief ExecutiveShuaib A. Malik
14
Mar. 31, 2018 Mar. 31, 2017
Rupees ('000)
Nine months period ended
Condensed Interim Cash Flow Statement (Unaudited)For the nine months period ended March 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
29,673,969 (3,510,767) (2,284,412) (1,999,083)
21,879,707
CASH FLOWS FROM INVESTING ACTIVITIES
(4,524,537) 689
484,904 697,187
(3,341,757)
CASH FLOWS FROM FINANCING ACTIVITIES
(12,567,902)
(12,567,902)
EFFECT OF EXCHANGE RATE CHANGES 845,266
INCREASES/(DECREASES) IN CASH AND CASH EQUIVALENTS 6,815,314
CASH AND CASH EQUIVALENTS AT JULY 01, 14,181,528
CASH AND CASH EQUIVALENTS AT MAR. 31, 20,996,842
Cash receipts from customers 19,335,017 Operating and exploration costs paid (4,761,807)Royalty paid (1,688,047)Taxes paid (986,648)
Cash provided by operating activities 11,898,515
Fixed assets additions (4,550,099)Proceeds from disposal of property, plant and equipment 10,855 Income on bank deposits and held-to-maturity investments 314,144 Dividend income received 650,214
Cash used in investing activities (3,574,886)
Dividend paid (8,319,403)
Cash used in financing activities (8,319,403)
(76,408)
(72,182)
10,763,801
10,691,619
The annexed notes 1 to 25 form an integral part of this condensed interim financial information.
DirectorAbdus Sattar
CFOKhalid Nafees
Chief ExecutiveShuaib A. Malik
Condensed Interim Statement of Changes in Equity (Unaudited)For the nine months period ended March 31, 2018
Balance at June 30, 2016 2,365,459 200,000 1,557,794 26,028,483 1,995 30,153,731
Total comprehensive income for the period:
Profit for the period - - - 7,465,618 - 7,465,618 Other comprehensive income - - - - 170 170
- - - 7,465,618 170 7,465,788 Transactions with owners:
Final dividend @ Rs 20 per share -Year ended June 30, 2016 - - - (4,730,918) - (4,730,918)Interim dividend @ Rs 15 per share -Year ended June 30, 2017 - - - (3,548,189) - (3,548,189)
Total transaction with owners - - - (8,279,107) - (8,279,107)
Balance at March 31, 2017 2,365,459 200,000 1,557,794 25,214,994 2,165 29,340,412
Total comprehensive income for the period:
Profit for the period - - - 2,212,888 - 2,212,888 Other comprehensive income - - - (55,210) (162) (55,372)
- - - 2,157,678 (162) 2,157,516
Balance at June 30, 2017 2,365,459 200,000 1,557,794 27,372,672 2,003 31,497,928
Total comprehensive income for the period:
Profit for the period - - - 7,867,900 - 7,867,900 Other comprehensive income - - - - 150 150
- - - 7,867,900 150 7,868,050 Transaction with owners:
Final dividend @ Rs 25 per share -Year ended June 30, 2017 - - - (5,913,648) - (5,913,648)Interim dividend @ Rs 17.50 per share - Year ending June 30, 2018 - - - (4,139,554) - (4,139,554)
Total transaction with owners - - - (10,053,202) - (10,053,202)
The annexed notes 1 to 25 form an integral part of this condensed interim financial information.
Balance at March 31, 2018 2,365,459 200,000 1,557,794 25,187,370 2,153 29,312,776
15
Rupees (’000)
Share capital
Insurancereserve
Investmentreserve
Fair valuegain/(loss)
on available-for-sale
investments
Total
Revenue reserves
Unappropriatedprofit
DirectorAbdus Sattar
CFOKhalid Nafees
Chief ExecutiveShuaib A. Malik
16
For the nine months period ended March 31, 2018
Selected notes to and forming part of the Condensed InterimFinancial Information (Unaudited)
1. Legal status and operations
2. Statement of compliance
3. Accounting policies
4. Revenue reserves
200,000
1,557,794
25,187,370
26,945,164
5. Deferred liabilities
6,550,426
9,843,181
8,172
16,401,779
6. Trade and other payables
The Company is incorporated in Pakistan as a public limited company and its shares are quoted on Pakistan Stock Exchange Limited. The registered office of the Company is situated at Morgah, Rawalpindi. The Company is principally engaged in exploration, drilling and production of crude oil and gas. Its activities also include marketing of liquefied petroleum gas under the brand name POLGAS and transmission of petroleum. The Company is a subsidiary of The Attock Oil Company Limited, UK and its ultimate parent is Bay View International Group S.A.
The condensed interim financial information of the Company for the nine month period ended March 31, 2018 has been prepared in accordance with the requirements of the International Accounting Standard 34 - Interim Financial Reporting and Companies Act 2017.
The accounting policies and the methods for computation adopted for the preparation of this condensed interim financial information is the same as those applied in preparation of the financial statements for the year ended June 30, 2017.
Insurance reserve 200,000
Investment reserve 1,557,794
Unappropriated profit 27,372,672
29,130,466
Provision for deferred income tax 6,411,100
Provision for decommissioning cost 8,578,227
Provision for staff compensated absences 10,075
14,999,402
These include balances due to joint venture partners amounting to Rs 2,157,491 thousand (June 30, 2017: Rs 2,158,196 thousand) and balances due to related parties amounting to Rs 493,213 thousand (June 30, 2017: Rs 130,469 thousand).
Mar. 31, 2018 Jun. 30, 2017
Rupees ('000)
17
For the nine months period ended March 31, 2018
Selected notes to and forming part of the Condensed InterimFinancial Information (Unaudited)
7. Contingencies and commitments
Contingencies:
a)3,083
b)
Commitments:
6,017,194
1,145,902
466,228
8. Property, plant and equipment
8,941,806
474,321
(1,150,047)
(506)
8,265,574
1,255,937
9,521,511
Guarantee issued by banks on behalf of the company 3,083
The Company is currently contesting applicability of super tax @ 3% of taxable profit from oil and gas operation under Petroleum Concession Agreement (PCAs) and has filed a writ petition in Islamabad High Court on the grounds that the Company being an exploration and production company falls under Special tax Regime as granted under PCAs. Management based on legal advise is confident that the writ petition will be decided in favour of the company, accordingly provision of Rs 522 million has not been made in this respect in the financial statements of years ended June 30, 2015, June 30, 2016 and June 30, 2017.
Capital expenditure commitments outstanding
- Share in joint ventures 7,622,953
- Own fields 2,774,835
- Letter of credit issued by banks on behalf of the company 56,868
Opening net book value 9,629,028
Additions during the period / year 925,625
Depreciation for the period / year (1,577,936)
Disposals during the period / year (34,911)
Operating assets - net book value 8,941,806
Capital work in progress - at cost 912,728
9,854,534
Mar. 31, 2018 Jun. 30, 2017
Rupees ('000)
Mar. 31, 2018 Jun. 30, 2017
Rupees ('000)
18
For the nine months period ended March 31, 2018
Selected notes to and forming part of the Condensed InterimFinancial Information (Unaudited)
9. Development and decommissioning costs
Development cost
12,913,828
294,190
2,070,532
(2,218,979)
13,059,571
Decommissioning cost
459,026
83,416
-
(72,877)
469,565
13,529,136
10. Exploration and evaluation assets
1,884,356
3,467,521
(2,070,532)
-
3,281,345
Opening net book value 12,649,020
Additions during the period / year 2,039,456
Well cost transferred from exploration and evaluation assets 944,410
Amortization for the period/ year (2,719,058)
Closing net book value 12,913,828
Opening net book value 1,935,893
Additions during the period / year 121,754
Revision due to change in estimates (1,507,610)
Amortization for the period/ year (91,011)
Closing net book value 459,026
13,372,854
Balance brought forward 900,813
Additions during the period/ year 2,899,238
Well cost transferred to development costs (944,410)
Dry and abandoned wells cost charged to theprofit & loss account (971,285)
1,884,356
Mar. 31, 2018 Jun. 30, 2017
Rupees ('000)
19
For the nine months period ended March 31, 2018
Selected notes to and forming part of the Condensed InterimFinancial Information (Unaudited)
11. Long term investments in subsidiaryand associated companies -at cost
Subsidiary company
51 1,530
Associated companies
25 8,046,635
7 1,562,938
10 4,500
9,615,603
12. Other long term investments
6,405
13. Trade debts
14. Advances, deposits, prepayments and other receivables
Unquoted
Capgas (Private) Limited 51 1,530
QuotedNational Refinery Limited 25 8,046,635
Attock Petroleum Limited 7 1,562,938
UnquotedAttock Information Technology Services (Private) Limited 10 4,500
9,615,603
Available-for-sales investments - at market price 6,255
These include Rs 2,178,631 thousand (June 30, 2017: Rs 1,442,801 thousand) receivable from related parties.
These include balances with joint venture partners amounting to Rs 75,982 thousand (June 30, 2017 : Rs 352,183 thousand) and balances with related parties amounting to Rs 98,548 thousand (June 30, 2017 : Rs 137,333 thousand).
Mar. 31, 2018 Jun. 30, 2017Percentage
holdingAmount
Rupees ('000)Percentage
holdingAmount
Rupees ('000)
Mar. 31, 2018 Jun. 30, 2017
Rupees ('000)
20
For the nine months period ended March 31, 2018
Selected notes to and forming part of the Condensed InterimFinancial Information (Unaudited)
15. Cash and bank balances
9,575,508
8,406,475
10,390
17,992,373
4,483
17,996,856
16. Net sales
4,888,806 12,247,416
2,106,205 4,856,141
1,697,303 4,751,520
46,236 123,825
7,950 7,950
8,746,500 21,986,852
16.1
Bank balance on:
Short term deposits 12,615,073
Interest / mark-up bearing saving accounts 1,543,023
Current account 20,534
14,178,630
Cash in hand 2,898
14,181,528
Balance with banks include foreign currency balances of US $ 88,694 thousand (June 30, 2017: US $ 73,533 thousand).
Crude oil 3,369,739 8,963,691
Gas - note 16.1 2,526,746 6,937,323
POLGAS - Refill of cylinders 1,682,720 4,418,856
Solvent oil 31,820 96,056
Sulphur - -
7,611,025 20,415,926
On August 28, 2015, the Company signed the Supplemental Agreement with the Government of Pakistan (the Government) for conversion of TAL Block Petroleum Concession Agreement (PCA) signed under the Petroleum Policy 1997 to Petroleum (Exploration & Production) Policy 2012 (Petroleum Policy 2012). Price regimes prevailing in Petroleum Policy 2007, Petroleum Policy 2009 and Petroleum Policy 2012 shall be applicable correlated with the spud date of wells in the respective policies starting from November 27, 2007 and for future exploratory efforts under the above mentioned Block.
On December 27, 2017, the Ministry of Energy (Petroleum Division) notified amendments in Petroleum Policy 2012 and imposed Windfall Levy on Oil/Condensate. Under the said Notification, the Supplemental Agreements already executed for conversion from Petroleum Policies of 1994 & 1997 shall be amended within 90 days, failing which the working interest owners would not remain eligible for enhanced gas price incentive. On January 3, 2018, Directorate General Petroleum Concessions (DGPC) required all exploration and production companies to submit Supplemental Agreements to incorporate the aforementioned amendments in PCAs signed under policies 1994 and 1997, for execution within the stipulated time as specified above.
Nine months period endedThree months period ended
Rupees ('000) Mar. 31, 2017Mar. 31, 2018 Mar. 31, 2017Mar. 31, 2018
Mar. 31, 2018 Jun. 30, 2017
Rupees ('000)
21
For the nine months period ended March 31, 2018
Selected notes to and forming part of the Condensed InterimFinancial Information (Unaudited)
Nine months period endedThree months period ended
Rupees ('000) Mar. 31, 2017Mar. 31, 2018 Mar. 31, 2017Mar. 31, 2018
Based on legal advice, the Company is of the view that already executed Supplemental Agreement cannot be changed unilaterally, the Supplemental Agreement was signed under the Conversion Package where gas price was enhanced and Windfall Levy on Oil/Condensate (WLO) was not applicable, the impugned SRO by giving retrospective effect amounts to taking away the vested rights already accrued in favour of the Company. The Government has no authority to give any law or policy a retrospective effect and thereby Constitutional Petitions challenging the imposition of windfall levy on Oil/Condensate were filed on February 19, 2018. The Honorable Islamabad High Court after hearing the petitioners on February 20, 2018, directed the parties to maintain the status quo in this respect and further directed the respondents to file their report & para wise comments before next date of hearing.
On prudent basis additional revenue on account of enhanced gas price incentive due to conversion from Petroleum Policy 1997 to Petroleum Policy 2012 since inception to March 31, 2018 amounting to Rs 6,915 million has been reversed. This revenue will be accounted for upon resolution of this matter.
Operating Cost
- Own fields 277,543 881,315
- Share in joint ventures 615,497 1,760,685
Well Workovers 14,455 137,091
POLGAS-Cost of gas/LPG, carriage etc. 871,373 2,405,862
Pumping and transportation cost 7,444 23,504
Depreciation 389,025 1,153,898
2,175,337 6,362,355
Opening stock of crude oil and other products 445,322 375,521
Closing stock of crude oil and other products (375,530) (375,530)
2,245,129 6,362,346
Geological & geophysical cost 246,352 436,683
17. Operating costs
432,586 1,043,312
680,866 1,889,958
81,167 52,616
797,691 2,407,555
16,747 34,629
366,382 1,095,343
2,375,439 6,523,413
241,029 221,893
(225,968) (225,968)
2,390,500 6,519,338
18. Exploration costs
275,059 1,015,467
22
For the nine months period ended March 31, 2018
Selected notes to and forming part of the Condensed InterimFinancial Information (Unaudited)
Nine months period endedThree months period ended
Rupees ('000) Mar. 31, 2017Mar. 31, 2018 Mar. 31, 2017Mar. 31, 2018
19. Finance costs
149,222 396,794
393,204 819,231
1,031 2,874
543,457 1,218,899
20. Other charges
199,093 521,240
44,271 114,618
243,364 635,858
21. Other income
Income from financial assets
155,888 487,748
390,894 845,266
Dividend from subsidiary and associated companies 87,309 697,187
Other income
31,466 95,675
39,911 89,429
33,688 84,666
136 183
39 1,365
1,565 4,339
740,896 2,305,858
Provision for decommissioning cost
- Unwinding of discount 189,604 568,812
- Exchange loss 4,669 14,006
Banks' commission and charges 778 2,011
195,051 584,829
Workers' profit participation fund 196,074 513,433
Workers' welfare fund 45,561 111,560
241,635 624,993
Income on bank saving accounts, deposits and held-to-maturity investments 138,254 352,685
Exchange gain/(loss) on financial assets (71,939) (76,408)
94,539 650,214
Rental income - net of related expenses 43,285 79,941
Crude oil/Gas transportation income - net of related expenses 73,680 157,536
Gas processing fee 32,123 81,093
Profit on sale of property, plant and equipment 1,298 9,078
Sale of stores and scrap 1 2,946
Others 720 2,712
311,961 1,259,797
23
For the nine months period ended March 31, 2018
Selected notes to and forming part of the Condensed InterimFinancial Information (Unaudited)
22. Provision for taxation
501,295 1,781,905
130,813 139,325
632,108 1,921,230
23. Transaction with related parties
Sales of goods and services to
4,101,180 10,966,654
3,155 9,652
Purchase of goods and services from
371,476 883,424
2,238 6,378
37,877 93,475
Dividend Paid
- 3,119,449
433 9,921
35,498 95,447
Dividend Received
87,209 697,187
- -
Other related parties
25,524 100,281
20,056 58,894
7,355 21,658
199,093 521,240
Current 716,315 1,847,334
Deferred 154,919 339,789
871,234 2,187,123
Aggregate transactions with related parties of the Company were as follows:
Associated companies 2,748,240 7,092,480
Subsidiary company 5,363 15,919
Associated companies 270,058 757,260
Subsidiary company 1,024 4,114
Parent company 13,842 38,039
Parent company 1,871,670 4,367,229
Associated companies 5,393 12,984
Key management personnel 47,718 95,636
Associated companies 87,309 632,657
Subsidiary company 7,230 17,557
Remuneration of Chief Executive and key management personnel including benefits and perquisites 27,532 74,824
Contribution to staff retirement benefits plans
Management Staff Pension Fund and Gratuity Fund 17,264 52,230
Approved Contributory Provident Funds 6,478 19,753
Contribution to Workers' Profit Participation Fund 196,074 513,433
Nine months period endedThree months period ended
Rupees ('000) Mar. 31, 2017Mar. 31, 2018 Mar. 31, 2017Mar. 31, 2018
24
For the nine months period ended March 31, 2018
Selected notes to and forming part of the Condensed InterimFinancial Information (Unaudited)
24. Operating segments
25. Date of authorization
The financial information has been prepared on the basis of single reportable segment. Revenue from external customers for products of the Company is disclosed in note 16.
Revenue from two major customers of the Company constitutes 66 % of the total revenue during the period ended March 31, 2018 (March 31, 2017: 66 %).
This condensed interim financial information was authorized for circulation to the shareholders by the Board of Directors of the Company on April 16, 2018.
DirectorAbdus Sattar
CFOKhalid Nafees
Chief ExecutiveShuaib A. Malik
Condensed Interim Consolidated
Financial Statements (Unaudited)For the Nine months period ended March 31, 2018
Condensed Interim Consolidated Balance Sheet (Unaudited)As at March 31, 2018
26
Note
Rupees ('000)Mar. 31, 2018 Jun. 30, 2017
SHARE CAPITAL AND RESERVES
ATTRIBUTABLE TO OWNERS OF PAKISTAN OILFIELDS LIMITED
5,000,000
2,365,459
5 2,016,214
6 31,667,481
2,153
36,051,307
NON - CONTROLLING INTEREST 120,029
36,171,336NON CURRENT LIABILITIES
1,009,972
7 17,223,689
18,233,661
CURRENT LIABILITIES AND PROVISIONS
8 11,976,840
2,654,422
4,194,076
18,825,338 CONTINGENCIES AND COMMITMENTS 9
73,230,335
Authorised capital 5,000,000
Issued, subscribed and paid-up capital 2,365,459
Capital reserves 2,015,858
Revenue reserves 33,841,980
Fair value gain on available-for-sale investments 2,003
38,225,300
106,317
38,331,617
Long term deposits 1,004,620
Deferred liabilities 15,823,456
16,828,076
Trade and other payables 5,898,491
Unclaimed Dividend 139,722
Provision for income tax 4,406,640
10,444,853
65,604,546
27
Note
Rupees ('000)Mar. 31, 2018 Jun. 30, 2017
FIXED ASSETS
10 9,591,526
11 13,529,136
12 3,281,345
234,200
26,636,207
LONG TERM INVESTMENT IN ASSOCIATED
COMPANIES 13 17,041,299
OTHER LONG TERM INVESTMENTS 14 6,405
LONG TERM LOANS AND ADVANCES 15,084
CURRENT ASSETS
3,604,247
235,050
15 2,852,593
16 1,729,274
2,999,986
17 18,110,190
29,531,340
73,230,335
Property, plant and equipment 9,935,172
Development and decommissioning costs 13,372,854
Exploration and evaluation assets 1,884,356
Other intangible assets 283,363
25,475,745
17,044,413
6,255
17,639
Stores and spares 3,898,248
Stock in trade 245,060
Trade debts 3,293,220
Advances, deposits, prepayments and other receivables 1,325,306
Short term investments -
Cash and bank balances 14,298,660
23,060,494
65,604,546
The annexed notes 1 to 27 form an integral part of this condensed interim consolidated financial information.
DirectorAbdus Sattar
CFOKhalid Nafees
Chief ExecutiveShuaib A. Malik
28
Note
Nine months period endedThree months period ended
Rupees ('000)Mar. 31, 2018 Mar. 31, 2017Mar. 31, 2017Mar. 31, 2018
SALES 9,734,872 24,371,663
(779,977) (1,772,681)
NET SALES 18 8,954,895 22,598,982
19 (2,589,554) (7,071,092)
(82,454) (229,379)
(1,359,782) (2,450,342)
(801,619) (2,291,856)
(4,833,409) (12,042,669)
GROSS PROFIT 4,121,486 10,556,313
20 (275,059) (1,015,467)
3,846,427 9,540,846
(57,830) (157,530)
21 (543,457) (1,218,899)
22 (243,581) (638,821)
(844,868) 2,015,250)
3,001,559 7,525,596
23 652,714 1,606,324
3,654,273 9,131,920
89,251 694,099
PROFIT BEFORE TAXATION 3,743,524 9,826,019
24 (632,986) (1,933,223)
PROFIT FOR THE PERIOD 3,110,538 7,892,796
3,109,535 7,879,084
1,003 13,712
3,110,538 7,892,796
13.15 33.31
8,508,764 22,957,461
Sales tax (733,652) (2,043,546)
7,775,112 20,913,915
Operating costs (2,388,447) (6,759,708)
Excise duty (70,376) (200,346)
Royalty (668,711) (1,742,408)
Amortisation of development and decommissioning costs (542,969) (1,968,808)
(3,670,503) (10,671,270)
4,104,609 10,242,645
Exploration costs (246,352) (436,683)
3,858,257 9,805,962
Administration expenses (38,863) (123,325)
Finance costs (195,180) (585,219)
Other charges (242,696) (631,022)
(476,739) (1,339,566)
3,381,518 8,466,396
Other income 219,409 617,490
3,600,927 9,083,886
Share in profits of associated companies -
net of impairment loss 85,431 708,588
3,686,358 9,792,474
Provision for taxation (875,739) (2,212,406)
2,810,619 7,580,068
Attributable to:
Owners of Pakistan Oilfields Limited (POL) 2,805,804 7,552,591
Non - controlling interests 4,815 27,477
2,810,619 7,580,068
Earnings per share - Basic and diluted (Rs) 11.86 31.93
The annexed notes 1 to 27 form an integral part of this condensed interim consolidated financial information.
Condensed Interim Consolidated Profit and Loss Account (Unaudited)For the nine months period ended March 31, 2018
DirectorAbdus Sattar
CFOKhalid Nafees
Chief ExecutiveShuaib A. Malik
29
PROFIT FOR THE PERIOD 3,110,538 7,892,796
OTHER COMPREHENSIVE INCOME
Item that may be subsequently reclassified to profit or loss
- 150
(50) (26)
(50) 124
TOTAL COMPREHENSIVE INCOME 3,110,488 7,892,920
3,109,485 7,879,208
1,003 13,712
3,110,488 7,892,920
2,810,619 7,580,068
Fair value adjustments on available-for-sale investments - net of tax 122 170
Acturial Gain/(loss) on staff retirement benefit plan by associated companies - net of tax 18 (232)
140 (62)
2,810,759 7,580,006
Attributable to:
Owners of Pakistan Oilfields Limited (POL) 2,805,944 7,552,529
Non - controlling interests 4,815 27,477
2,810,759 7,580,006
The annexed notes 1 to 27 form an integral part of this condensed interim consolidated financial information.
Nine months period endedThree months period ended
Rupees ('000)Mar. 31, 2017Mar. 31, 2018 Mar. 31, 2017Mar. 31, 2018
Condensed Interim Consolidated Statement of Comprehensive Income (Unaudited)
For the nine months period ended March 31, 2018
DirectorAbdus Sattar
CFOKhalid Nafees
Chief ExecutiveShuaib A. Malik
30
Note Mar. 31, 2018 Mar. 31, 2017
Rupees ('000)
Nine months period ended
CASH FLOWS FROM OPERATING ACTIVITIES
30,281,914 (4,116,782)(2,284,412)(2,006,421)
21,874,299
CASH FLOWS FROM INVESTING ACTIVITIES
(4,524,639) 2,401
- 484,904 697,187
(3,340,147)
CASH FLOWS FROM FINANCING ACTIVITIES
(12,567,902) -
(12,567,902)
EFFECT OF EXCHANGE RATE CHANGES 845,266
DECREASES IN CASH AND CASH EQUIVALENTS 6,811,516
CASH AND CASH EQUIVALENTS AT JULY 01, 14,298,660
CASH AND CASH EQUIVALENTS AT MAR. 31, 21,110,176
Cash receipts from customers 19,832,780 Operating and exploration costs paid (5,152,606)Royalty paid (1,688,047)Taxes paid (1,010,713)
Cash provided by operating activities 11,981,414
Fixed assets additions (4,550,569)Proceeds from disposal of property, plant and equipment 11,431 Purchase of LPG quota (108,325)Income on bank deposits and held-to-maturity investments 325,843 Dividend received from associated companies 632,657
Cash used in investing activities (3,688,963)
Dividend paid (8,319,403)Dividend paid to non - controlling interest holders (16,868)
Cash used in financing activities (8,336,271)
(76,408)
(120,228)
10,994,832
10,874,604
The annexed notes 1 to 27 form an integral part of this condensed interim consolidated financial information.
Condensed Interim Consolidated Cash Flow Statement (Unaudited)
For the nine months period ended March 31, 2018
DirectorAbdus Sattar
CFOKhalid Nafees
Chief ExecutiveShuaib A. Malik
31
Condensed Interim Consolidated Statement of Changes in Equity (Unaudited)
For the nine months period ended March 31, 2018
Balance at June 30, 2016 2,365,459 59,754 962,745 - 200,000 5,102,325 25,967,858 1,995 34,660,136 100,216 34,760,352
Total comprehensive income for the period:
Profit for the period - - - - - - 7,552,591 - 7,552,591 27,477 7,580,068
Other comprehensive income - - - - - - (232) 170 (62) - (62)
- - - - - - 7,552,359 170 7,552,529 27,477 7,580,006
Transfer to general reserve by an associated company - - - - - 1,000,000 (1,000,000) - - - -
Transactions with owners:
POL dividends:
Final dividend @ Rs 20 per share - Year ended June 30, 2016 - - - - - - (4,730,918) - (4,730,918) - (4,730,918)
Interim dividend @ Rs 15 per share - Year ended June 30, 2017 - - - - - - (3,548,189) - (3,548,189) - (3,548,189)
Dividend to CAPGAS non-controlling interest holders:
Final dividend @ Rs 30 per share - Year ended June 30, 2016 - - - - - - - - - (9,923) (9,923)
Interim dividend @ Rs 21 per share - Year ended June 30, 2017 - - - - - - - - - (6,946) (6,946)
Total transactions with owners - - - - - (8,279,107) - (8,279,107) (16,869) (8,295,976)
Balance at March 31, 2017 2,365,459 59,754 962,745 - 200,000 6,102,325 24,241,110 2,165 33,933,558 110,824 34,044,382
Total comprehensive income for the period:
Profit for the period - - - - - - 4,329,468 - 4,329,468 (4,463) 4,325,005
Other comprehensive income - - - - - - (37,564) (162) (37,726) (44) (37,770)
- - - - - - 4,291,904 (162) 4,291,742 (4,507) 4,287,235
Transfer to special reserve by associated companies - - 993,359 - - - (993,359) - - - -
Transfer to utilised special reserve by associated companies - - (1,941,044) 1,941,044 - - - - - - -
Balance at June 30, 2017 2,365,459 59,754 15,060 1,941,044 200,000 6,102,325 27,539,655 2,003 38,225,300 106,317 38,331,617
Total comprehensive income for the period:
Profit for the period - - - - - - 7,879,084 - 7,879,084 13,712 7,892,796
Other comprehensive income - - - - - - (26) 150 124 - 124
- - - - - - 7,879,058 150 7,879,208 13,712 7,892,920
Transfer to general reserve by an associated company - - - - - 750,000 (750,000) - - - -
Transfer from special reserve by associated companies - - 356 - - - (356) - - - -
Transactions with owners:
POL dividends:
Final dividend @ Rs 25 per share - Year ended June 30, 2017 - - - - - - (5,913,648) - (5,913,648) - (5,913,648)
Interim dividend @ Rs 17.5 per share - Year ending June 30, 2018 - - - - - (4,139,553) - (4,139,553) - (4,139,553)
Total transactions with owners - - - - - (10,053,201) - (10,053,201) - (10,053,201)
The annexed notes 1 to 27 form an integral part of this condensed interim consolidated financial information.
Balance at March 31, 2018 2,365,459 59,754 15,416 1,941,044 200,000 6,852,325 24,615,156 2,153 36,051,307 120,029 36,171,336
Rupees (’000)
Bonus shares issued by subsidiary/ associated companies
Special reserve
Insurance reserve
General reserve
Unappropriated profit
Fair value gain/ (loss)
on available-for-sale
investments Total
ShareCapital
Capital Reserves Revenue Reserves
Non-controlling
interest Total
Attributable to owners of Pakistan Oilfields Limited
UtilisedSpecial Reserve
DirectorAbdus Sattar
CFOKhalid Nafees
Chief ExecutiveShuaib A. Malik
32
Selected notes to and forming part of the Condensed Interim Consolidated Financial Information (Unaudited) For the nine months period ended March 31, 2018
1. Legal status and operations
2. Basis of consolidation
3. Statement of compliance
4. Accounting policies
The Company is incorporated in Pakistan as a public limited company and its shares arequoted on Pakistan Stock Exchange Limited. The registered office of the Company is situated at Morgah, Rawalpindi. The Company is principally engaged in exploration, drilling and production of crude oil and gas. Its activities also include marketing of liquefied petroleum gas under the brand name POLGAS and transmission of petroleum. The Company is a subsidiary of The Attock Oil Company Limited, UK and its ultimate parent is Bay View International Group S.A.
Capgas (Private) Limited, the subsidiary company is incorporated in Pakistan as a private limited company under the Companies Ordinance, 1984 and is principally engaged in buying, filling, distribution and dealing in Liquefied Petroleum Gas (LPG).
For the purpose of these accounts, POL and its consolidated subsidiary are referred as the Company.
The consolidated financial information include the financial statements of POL and its subsidiary Capgas (Private) Limited with 51% holding (June 30, 2017: 51%).
Subsidiaries are those enterprises in which parent company directly or indirectly controls, beneficially owns or holds more than 50% of the voting securities or otherwise has power to elect and appoint more than 50% of its directors. The financial statements of the subsidiary are included in the consolidated financial statements from the date control commences until the date that control ceases.
The assets and liabilities of subsidiary company have been consolidated on a line by line basis and the carrying value of investments held by the parent company is eliminated against the subsidiary shareholders' equity in the consolidated financial statements.
Material intra-group balances and transactions have been eliminated.
Non-controlling interests are that part of the net results of the operations and of net assets of the subsidiary attributable to interests which are not owned by the parent company. Non-controlling interest are presented as a separate item in the consolidated financial statements.
The condensed interim financial information of the Company for the nine month period ended March 31, 2018 has been prepared in accordance with the requirements of the International Accounting Standard 34 - Interim Financial Reporting and Companies Act 2017.
The accounting policies and the methods for computation adopted for the preparation of this condensed interim consolidated financial information is the same as those applied in preparation of the financial statements for the year ended June 30, 2017.
33
Selected notes to and forming part of the Condensed Interim Consolidated Financial Information (Unaudited) For the nine months period ended March 31, 2018
5. Capital reserves
59,754 15,416
1,941,044
2,016,214
6. Revenue reserves
200,000 6,852,325
24,615,156
31,667,481
7. Deferred liabilities
7,368,327 9,843,181
4,009 8,172
17,223,689
8. Trade and other payables
9. Contingencies and commitments
Contingencies:
a) 3,083
b)
Bonus shares issued by subsidiary/associated companies 59,754 Special reserve 15,060 Utilised Special reserve 1,941,044
2,015,858
Insurance reserve 200,000 General reserve 6,102,325 Unappropriated profit 27,539,655
33,841,980
Provision for deferred income tax 7,229,001 Provision for decommissioning cost 8,578,227 Provision for gratuity 6,153 Provision for staff compensated absences 10,075
15,823,456
These include balances due to joint venture partners amounting to Rs 2,157,491 thousand (June 30, 2017: Rs 2,158,196 thousand) and balances due to related parties amounting to Rs 493,508 thousand (June 30, 2017: Rs 134,117 thousand).
Guarantee issued by banks on behalf of the company 3,083
The Company is currently contesting applicability of super tax @ 3% of taxable profit from oil and gas operation under Petroleum Concession Agreement (PCAs) and has filed a writ petition in Islamabad High Court on the grounds that the Company being an exploration and production company falls under Special tax Regime as granted under PCAs. Management based on legal advise is confident that the writ petition will be decided in favour of the company, accordingly provision of Rs 522 million has not been made in this respect in the financial statements of years ended June 30, 2015, June 30, 2016 and June 30, 2017.
Mar. 31, 2018 Jun. 30, 2017Rupees ('000)
Mar. 31, 2018 Jun. 30, 2017Rupees ('000)
34
Selected notes to and forming part of the Condensed Interim Consolidated Financial Information (Unaudited) For the nine months period ended March 31, 2018
Capital expenditure commitments outstanding
- Share in Joint Ventures 7,622,953
- Own fields 2,774,835
- Letter of credit issued by banks on behalf of the company 56,868
Opening net book value 9,724,414
Additions during the period/year 926,095
Depreciation for the period/year (1,593,152)
Disposals during the period/year (34,913)
Operating assets - net book value 9,022,444
Capital work in progress - at cost 912,728
9,935,172
Opening net book value 12,649,020
Additions during the period / year 2,039,456
Well cost transferred from exploration & evaluation assests 944,410
Amortization for the period/ year (2,719,058)
Closing net book value 12,913,828
Opening net book value 1,935,893
Additions during the period / year 121,754
Revision due to change in estimates (1,507,610)
Amortization for the period/ year (91,011)
Closing net book value 459,026
13,372,854
Commitments:
6,017,194
1,145,902
466,228
10. Property, plant and equipment
9,022,444
474,423
(1,160,772)
(506)
8,335,589
1,255,937
9,591,526
11. Development and decommissioning costs
Development cost
12,913,828
294,190
2,070,532
(2,218,979)
13,059,571
Decommissioning cost
459,026
83,416
-
(72,877)
469,565
13,529,136
Mar. 31, 2018 Jun. 30, 2017Rupees ('000)
35
Selected notes to and forming part of the Condensed Interim Consolidated Financial Information (Unaudited) For the nine months period ended March 31, 2018
12. Exploration and evaluation assets
1,884,356
3,467,521
5,351,877
(2,070,532 )
-
3,281,345
13. Long term investment in associated companies - equity method
17,044,413
694,099
(26)
(697,187)
17,041,299
14. Other long term investments
6,405
15. Trade debts
16. Advances, deposits, prepayments and other receivables
Balance brought forward 900,813
Additions during the period/year 2,899,238
3,800,051
Well cost Transfer to development costs (944,410)
Dry and abandoned wells cost charged to the profit & loss account (971,285)
1,884,356
Beginning of the year 14,017,705
Share in profits of associated companies - net of impairment loss 3,641,905
Acturial loss on staff retirement benefit plan 17,460
Dividend received during the period / year (632,657)
End of the period / year 17,044,413
Available-for-sale investments - at market price 6,255
These include Rs 2,178,631 thousand (June 30, 2017: Rs 1,442,801 thousand) receivable from related parties.
These include balances due from joint venture partners amounting to Rs 75,982 thousand (June 30, 2017: Rs 352,183 thousand) and balances due from related parties amounting to Rs 96,323 thousand (June 30, 2017: Rs 137,333 thousand).
Mar. 31, 2018 Jun. 30, 2017Rupees ('000)
36
Selected notes to and forming part of the Condensed Interim Consolidated Financial Information (Unaudited) For the nine months period ended March 31, 2018
17. Cash and bank balances
8,518,896
9,575,508
11,230
18,105,634 4,556
18,110,190
18. Net sales
4,888,806 12,247,416 2,106,205 4,856,141 1,905,698 5,363,650
46,236 123,825 7,950 7,950
8,954,895 22,598,982
18.1
Bank balance on:
Interest/mark-up bearing saving accounts 1,655,765
Short term deposits 12,615,073
Current accounts 24,848
14,295,686 Cash in hand 2,974
14,298,660
Balance with banks include foreign currency balances of US $ 88,694 thousand (June 30, 2017: US $ 73,533 thousand).
Crude oil 3,369,739 8,963,691 Gas - note 18.1 2,526,746 6,937,323 POLGAS/CAPGAS - Refill of cylinders 1,846,807 4,916,845 Solvent oil 31,820 96,056 Sulphur - -
7,775,112 20,913,915
On August 28, 2015, the Company signed the Supplemental Agreement with the Government of Pakistan (the Government) for conversion of TAL Block Petroleum Concession Agreement (PCA) signed under the Petroleum Policy 1997 to Petroleum (Exploration & Production) Policy 2012 (Petroleum Policy 2012). Price regimes prevailing in Petroleum Policy 2007, Petroleum Policy 2009 and Petroleum Policy 2012 shall be applicable correlated with the spud date of wells in the respective policies starting from November 27, 2007 and for future exploratory efforts under the above mentioned Block.
On December 27, 2017, the Ministry of Energy (Petroleum Division) notified amendments in Petroleum Policy 2012 and imposed Windfall Levy on Oil/Condensate. Under the said Notification, the Supplemental Agreements already executed for conversion from Petroleum Policies of 1994 & 1997 shall be amended within 90 days, failing which the working interest owners would not remain eligible for enhanced gas price incentive. On January 3, 2018, Directorate General Petroleum Concessions (DGPC) required all exploration and production companies to submit Supplemental Agreements to incorporate the aforementioned amendments in PCAs signed under policies 1994 and 1997, for execution within the stipulated time as specified above.
Mar. 31, 2018 Jun. 30, 2017Rupees ('000)
Nine months period endedThree months period ended
Rupees ('000)Mar. 31, 2018 Mar. 31, 2017Mar. 31, 2017Mar. 31, 2018
37
Selected notes to and forming part of the Condensed Interim Consolidated Financial Information (Unaudited) For the nine months period ended March 31, 2018
Based on legal advice, the Company is of the view that already executed Supplemental Agreement cannot be changed unilaterally, the Supplemental Agreement was signed under the Conversion Package where gas price was enhanced and Windfall Levy on Oil/Condensate (WLO) was not applicable, the impugned SRO by giving retrospective effect amounts to taking away the vested rights already accrued in favour of the Company. The Government has no authority to give any law or policy a retrospective effect and thereby Constitutional Petitions challenging the imposition of windfall levy on Oil/Condensate were filed on February 19, 2018. The Honorable Islamabad High Court after hearing the petitioners on February 20, 2018, directed the parties to maintain the status quo in this respect and further directed the respondents to file their report & para wise comments before next date of hearing.
On prudent basis additional revenue on account of enhanced gas price incentive due to conversion from Petroleum Policy 1997 to Petroleum Policy 2012 since inception to March 31, 2018 amounting to Rs 6,915 million has been reversed. This revenue will be accounted for upon resolution of this matter.
Operating cost - Own fields 285,928 904,574 - Share in joint ventures 615,497 1,760,685
Well workover 14,455 137,091 POLGAS/CAPGAS -Cost of gas/LPG, carriage etc 992,356 2,745,361 Pumping and transportation cost 7,444 23,504 Depreciation 397,869 1,184,541
2,313,549 6,755,756 Opening stock of crude oil and other products 451,033 380,087 Closing stock of crude oil and other products (376,135) (376,135)
2,388,447 6,759,708
Geological & geophysical cost 246,352 436,683
Provision for decommissioning costs- Unwinding of discount 189,604 568,812 - Exchange loss/(gain) 4,669 14,006
Banks' commission and charges 907 2,401
195,180 585,219
19. Operating costs
439,688 1,064,230 680,866 1,889,958
81,167 52,616
968,798 2,864,610 16,747 34,629
386,216 1,155,039
2,573,482 7,061,082
251,122 245,060
(235,050) (235,050)
2,589,554 7,071,092
20. Exploration Costs
275,059 1,015,467
21. Finance costs
149,222 396,794 393,204 819,231
1,031 2,874
543,457 1,218,899
Nine months period endedThree months period ended
Rupees ('000)Mar. 31, 2018 Mar. 31, 2017Mar. 31, 2017Mar. 31, 2018
38
22. Other charges
199,250 523,387 44,331 115,434
243,581 638,821
23. Other income
156,621 490,417
390,894 845,266
Other income
31,115 94,622
39,911 89,429 33,688 84,666
136 183 39 1,365
310 376
652,714 1,606,324
24. Provision for taxation
502,173 1,793,898 130,813 139,325
632,986 1,933,223
Workers' profit participation fund 196,843 517,802 Workers' welfare fund 45,853 113,220
242,696 631,022
Income from financial assetsIncome on bank deposits and held-to-maturity investments 141,265 361,828 Exchange gain/(loss) on financial assets (71,939) (76,408)
Rental income -net of related expenses 42,934 78,888 Crude oil / gas transportation income - net of related expenses 73,680 157,536 Gas processing fee 32,123 81,093 Profit on sale of property, plant and equipment 1,298 9,654 Sale of stores and scrap 1 2,946 Others 47 1,953
219,409 617,490
Current 720,820 1,872,617 Deferred 154,919 339,789
875,739 2,212,406
Nine months period endedThree months period ended
Rupees ('000)Mar. 31, 2018 Mar. 31, 2017Mar. 31, 2017Mar. 31, 2018
Selected notes to and forming part of the Condensed Interim Consolidated Financial Information (Unaudited) For the nine months period ended March 31, 2018
39
Selected notes to and forming part of the Condensed Interim Consolidated Financial Information (Unaudited) For the nine months period ended March 31, 2018
25. Transactions with related parties
Sales of goods and services to
4,101,180 10,966,654
Purchase of goods and services from
37,877 93,475 371,476 883,424
Dividend Paid
- 3,119,449 433 9,921
35,498 95,447
Dividend Received
87,309 697,187
Other related parties
26,678 102,763
21,381 60,222
8,684 22,986
199,250 523,387
Aggregate transactions with related parties of the Company were as follows:
Associated companies 2,748,240 7,092,480
Parent company 13,842 38,039 Associated companies 270,058 757,260
Parent company 1,871,670 4,367,229 Associated companies 5,393 12,984 Key management personnel 47,718 95,636
Associated companies 87,309 632,657
Remuneration of Chief Executive and key management personnel including benefits and perquisites 32,559 92,906
Contribution to staff retirement benefits plans
Management Staff Pension Fund and Gratuity Fund 17,348 54,736 Approved Contributory Provident Funds 6,520 21,006
Contribution to Workers' profit participation fund 196,843 517,802
Nine months period endedThree months period ended
Rupees ('000)Mar. 31, 2018 Mar. 31, 2017Mar. 31, 2017Mar. 31, 2018
40
26. Operating segments
27. Date of authorization
The financial statements have been prepared on the basis of single reportable segment. Revenue from external customers for products of the Company is disclosed in note 18.
Revenue from two major customers of the Company constitutes 63% of the total revenue during the period ended March 31, 2018 (March 31, 2017: 64%).
This condensed interim consolidated financial information was authorized for circulation to the shareholders by the Board of Directors of the Company on April 16, 2018.
Selected notes to and forming part of the Condensed Interim Consolidated Financial Information (Unaudited) For the nine months period ended March 31, 2018
DirectorAbdus Sattar
CFOKhalid Nafees
Chief ExecutiveShuaib A. Malik
Exploration License Operator Interest %
D&P / Mining Lease
Ikhlas Pakistan Oilfields Limited 80.00
Kirthar South Pakistan Oilfields Limited 85.00
D.G. Khan Pakistan Oilfields Limited 70.00
Gurgalot Oil & Gas Development Company Limited 20.00
Tal Block MOL Pakistan Oil and Gas Co. B.V 25.00
Margala MOL Pakistan Oil and Gas Co. B.V 30.00
Hisal Pakistan Petroleum Limited 25.00
Balkassar Pakistan Oilfields Limited 100.00
Dhulian Pakistan Oilfields Limited 100.00
Joyamair Pakistan Oilfields Limited 100.00
Khaur Pakistan Oilfields Limited 100.00
Meyal / Uchri Pakistan Oilfields Limited 100.00
Minwal Pakistan Oilfields Limited 82.50
Pariwali Pakistan Oilfields Limited 82.50
Pindori Pakistan Oilfields Limited 35.00
Turkwal Pakistan Oilfields Limited 67.37
Adhi Pakistan Petroleum Limited 11.00
Chaknaurang Oil & Gas Development Company Limited 15.00
Jhal Magsi Oil & Gas Development Company Limited 24.00
Bhangali Ocean Pakistan Limited 7.00
Dhurnal Ocean Pakistan Limited 5.00
Ratana Ocean Pakistan Limited 4.5450
Manzalai MOL Pakistan Oil and Gas Co. B.V 25.00*
Makori MOL Pakistan Oil and Gas Co. B.V 25.00*
Makori East MOL Pakistan Oil and Gas Co. B.V 25.00*
Maramzai MOL Pakistan Oil and Gas Co. B.V 25.00*
Mami Khel MOL Pakistan Oil and Gas Co. B.V 25.00*
Tolanj MOL Pakistan Oil and Gas Co. B.V 25.00*
Tolanj West MOL Pakistan Oil and Gas Co. B.V 25.00*
* Pre-Commerciality interest
Shareholding in Exploration Licenses and D&P / Mining Leases
41