FIRST ASIA SECURITIES
PakistanSri LankaPREV
EquitiesFixed Income
DATA AS OF 13 JUL 2026 · EOD

POL

Pakistan Oilfields
E&P

LAST · PKR

679.72
−2.77 ▼ −0.41%
P/E 7.2× · YIELD 10.9% · ROE 34.2%

52W RANGE

538.22700.26
87% OF RANGE · YTD +15.3%
01 / POL — 1 YearAS OF 13 JUL 2026 · EOD
PERIOD 1Y · 250 SESSIONS▲
The Call
BUY+18%
800.00PKR · 12-MO
8.0× FY26E

Yield plus a modest re-rate.

Risks to our view
02 /

FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD

A 34% ROE and an 11% yield at seven times

  1. 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.

  2. 02

    High-payout Potohar operated assets plus non-operated discovery stakes throw off cash to distribute.

  3. 03

    The same circular-debt and oil sensitivities apply, but a near-11% yield pays you generously to hold through them.

  4. 04

    At ~8.0× our FY26E EPS the target is PKR 800; with the yield, total return clears the mid-20s.

Where we differ from the street
Street viewOur viewWe change our mind if
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.
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.
Receivables threaten the payout.Real, but POL's net-cash position and coverage cushion it better than the majors.Receivables compounding with no settlement.

— FIRST ASIA SECURITIES RESEARCH · NOT INVESTMENT ADVICE