Makori East to augur well for POL, PPL, OGDC – SCS Research
By: Rajesh Kumar Maheshwari,
Tel: 111-111-721 Ext: 116
Standard Capital Securities
Makori East is set to be in lime light with probable increase in 28mmcfd gas and 7300bopd oil at the end of January; the main Hungarian operator MOL announced – POL major beneficiary wherein now we see another 25% increase in our projected earnings of Rs 70/sh (we will come up with detail outlook in a separate report).
The Overall production from Tal block is 320mmcfd gas and 8760bopd oil where main players OGDC, PPL & POL are JV partners of Hungarian operator MOL. However, main impact is in POL which depends on JVs only since its own reserves and fields are on the depleting side. Some other stakeholders include Govt Holdings which is also on the privatization list.
We like oil exploration and production companies especially POL (major impact in FY14 EPS) & PPL.
After successful Ventolin expectorant, Glaxo brings Ventolin Evohaler imported from Australia – for remedial congestion, cough etc.
10 latest aircraft to be included in PIAA fleet which is in addition to the new head as per the Supreme Court directive – the acquisition of fuel efficient aircrafts has been approved by the BoD. We see this to be positive for PIAA since it is on the list of privatization which could come somewhere in 2014.
SBP issues Circular 8 wherein all written off loans to be included by banks- banks to provide details to SBP; NBP to be in spot light along with HBL. However, we see this to positive in the longer term for NBP since its recovery is set to increase.
SPI increases by 1.0 % WoW basis – as per FBS statement of Nov 21; it does not auger well for future uptick inflation numbers which is set to increase in Nov. We see new hike in SBP policy rate, which is all set to increase in next MPS.
Among others we like cements especially DGKC, PIOC and LPCL in the wake of probable increase in local demand; we see increase in provincial disbursement directed towards public sector spending. .