LAHORE - In 4QFY13, Pakistan’s oil production remained stagnant at 80k bpd against as compared to previous quarter while gas production declined by 4 per cent to 4bcfd against 4.2bcfd in previous quarter.

However, cumulative oil production of Topline Universe E&P companies Oil Gas Development Company (OGDC), Pakistan petrolium limited (PPL) and and Pakistan Oil Limited (POL) grew by 2 per cent to 57k bpd and gas production declined by 4 per cent to 2.1 bcfd. Thus, it is safe to say that 4QFY13 profitability will be more hinged on oil production growth.

However, with decline of 8 per cent in international oil prices (Arab light) during the quarter, impact of increased oil production is likely to be soften. Overlooking meager profit growth, being the final quarter of the fiscal year 2013 improved dividend payouts will keep investors’ interest in E&P sector stocks.