Vision, Mission 02

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



CFOKhalid Nafees


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


13

For the nine months period ended March 31, 2018Condensed Interim Statement of Comprehensive Income (Unaudited)




CFOKhalid Nafees


14

Mar. 31, 2018 Mar. 31, 2017

Rupees ('000)


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



CFOKhalid Nafees


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


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


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)


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


CFOKhalid Nafees


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



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



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


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



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



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



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.


Rupees ('000) Mar. 31, 2017Mar. 31, 2018 Mar. 31, 2017Mar. 31, 2018

Mar. 31, 2018 Jun. 30, 2017

Rupees ('000)

21





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





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



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


Parent company 13,842 38,039

Parent company 1,871,670 4,367,229


Key management personnel 47,718 95,636



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



24



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.


CFOKhalid Nafees


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.


CFOKhalid Nafees


28

Note



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)


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


Condensed Interim Consolidated Profit and Loss Account (Unaudited)For the nine months period ended March 31, 2018


CFOKhalid Nafees


29


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



Rupees ('000)Mar. 31, 2017Mar. 31, 2018 Mar. 31, 2017Mar. 31, 2018

Condensed Interim Consolidated Statement of Comprehensive Income (Unaudited)



CFOKhalid Nafees


30

Note Mar. 31, 2018 Mar. 31, 2017

Rupees ('000)


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


Condensed Interim Consolidated Cash Flow Statement (Unaudited)



CFOKhalid Nafees


31

Condensed Interim Consolidated Statement of Changes in Equity (Unaudited)


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


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


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


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)


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


CFOKhalid Nafees


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


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


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


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


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



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


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


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)



37


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



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




39


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


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



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.



CFOKhalid Nafees


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

Vision, Mission 02

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