POL
Pakistan OilfieldsLAST · PKR
52W RANGE
Source: PSX, First Asia Securities Research. Data as of 22 Jun 2026, EOD.
- Market cap
- 195bn
- P/E (ttm)
- 7.2×
- EPS (ttm)
- 95.64
- Dividend yield
- 10.9%
- Return on equity
- 34.2%
- Beta
- 0.46
- Free float
- 46%
- 52W high
- 744.95
- 52W low
- 529.00
- 1D change
- −0.96%
- YTD return
- +16.5%
High-payout E&P with operated assets in the Potohar basin and a stake in major non-operated discoveries.
FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD
A 34% ROE and an 11% yield at seven times
- 01
Buy, PKR 800 target: POL pairs a 34% ROE with a 10.9% dividend yield at just 7.2× — the best value-and-income combination in the energy patch.
- 02
High-payout Potohar operated assets plus non-operated discovery stakes throw off cash to distribute.
- 03
The same circular-debt and oil sensitivities apply, but a near-11% yield pays you generously to hold through them.
- 04
At ~8.0× our FY26E EPS the target is PKR 800; with the yield, total return clears the mid-20s.
| Metric | FY25A | FY26E | FY27E |
|---|---|---|---|
| Net profitPKR bn | 27.0 | 28.0 | 29.0 |
| EPSPKR | 95.4 | 99.2 | 103.2 |
| DPSPKR | 75.0 | 78.0 | 81.1 |
| P/E× | 7.2× | 6.9× | 6.7× |
| EPS growth% | — | +4.0% | +4.0% |
A = REPORTED · E = FAS ESTIMATE
Oil slump; payout trimmed.
6.0× stressed EPS
Yield plus a modest re-rate.
8.0× FY26E
New discoveries lift volumes and the multiple.
9.0× FY26E
Is the 10.9% yield sustainable?
Such a high payout is fragile to oil and receivables.
Coverage is sound and POL has defended the payout through cycles; it is a genuine floor.
A dividend cut or a sustained oil slump.
Small-cap E&P — does size matter?
Concentration and size warrant a discount.
A 34% ROE more than offsets the single-basin concentration; the discount is too wide.
Reserve depletion outrunning replacement.
Circular-debt exposure?
Receivables threaten the payout.
Real, but POL's net-cash position and coverage cushion it better than the majors.
Receivables compounding with no settlement.
| Assumption | Value | Basis |
|---|---|---|
| FY26E EPS | PKR 99.5 | FY25 base +4% |
| Target multiple | ~8.0× FY26E | modest re-rate from 7.2× |
| Total return | ~27% | ~16% price + 10.9% yield |
| 12-month target | PKR 800 | ≈8.0 × 99.5, rounded |
- 01Oil price & PKRWATCH · Arab Light, PKR/USD
- 02Circular-debt receivablesWATCH · Quarterly receivables
- 03Single-basin concentrationWATCH · Potohar production mix
- 04Payout sustainabilityWATCH · Cash flow, payout ratio
— GENERATED BY FIRST ASIA SECURITIES · NOT INVESTMENT ADVICE
| Symbol | Last | Chg % | P/E | M. Cap | 1Y |
|---|---|---|---|---|---|
| OGDCOil & Gas Development Company | 334.25 | +0.90% | 9.2× | 1.44tn | |
| MARIMari Energies | 658.67 | +0.03% | 11.5× | 788bn | |
| PPLPakistan Petroleum | 242.63 | +0.29% | 8.4× | 665bn | |
| POLPakistan Oilfields— THIS PAGE | 687.08 | −0.96% | 7.2× | 195bn |
Source: PSX, First Asia Securities Research. Data as of 22 Jun 2026, EOD.