Should You Buy POL in 2025?

POL in brief

How much does 1 POL cost?

The price of POL is on the rise this week. Currently, POL trades at PKR 529.67, reflecting a 0.79% increase over the last 24 hours and a 7.45% gain across the past week. With a market capitalization of PKR 150.35 billion, an average daily trading volume of 226,248 shares, and a total circulating supply of 283.86 million shares, POL ranks among the largest stocks in its sector with a market dominance of approximately 2.3%.

Investors in the AE region should note that, like many energy assets, POL offers strong income potential but also displays volatility driven by oil prices and regional developments—an important consideration for a well-balanced portfolio.

Our full opinion on the POL crypto

Have POL’s fundamentals and technical profile begun aligning for a promising new cycle? After reviewing the latest trends, price action and business expansion of Pakistan Oilfields Limited (POL) over the past three years, our proprietary algorithms have synthesized on-chain metrics, market signals and competitive positioning. So, why might POL once again become a strategic entry point in the oil & gas sector for 2025 and beyond? Let’s break down the case.

Recent Performance and Market Context

Price Evolution: Resilience Despite Cyclicality

POL has demonstrated notable stability amid sector volatility. As of June 3, 2025, the share trades at PKR 529.67—well within a 52-week range of PKR 451.10–699.00—showing significant resilience year-to-date. While the stock is down -16.14% YTD, it remains up +7.45% over the last twelve months, outpacing several local peers. Such retracements, especially from a pullback from 52-week highs, have historically represented attractive re-entry points, especially when dividend-adjusted performance is considered.

Positive Catalysts and Sector Tailwinds

Recent developments have dramatically upgraded the project pipeline. Jhandial field’s production surged (+590% YoY for oil, +471% for gas), new wells like Razgir and Makori Deep-3 are coming online, and the company boasts a PKR 102 billion cash position (over PKR 360/share). These advances reinforce POL’s positioning as a production growth leader. Meanwhile, robust dividend payouts (18.08% yield, PKR 95/share annual payout) underpin confidence, appealing especially to income-driven investors in the AE region.

Sector wide, the outlook for emerging-market oil & gas remains constructive. Persistent energy demand, coupled with relatively low valuations for E&P equities, supports a context where select stocks are poised for a re-rate. Pakistan’s fiscal reforms and PKR stabilization offer an additional boost.

Technical Analysis

Key Indicators: Early Signals of Reversal

• Relative Strength Index (RSI 14d): At 51.1, POL is neither overbought nor oversold—suggesting balanced supply/demand and room for directional movement.
• MACD: The current negative MACD (-0.85) points to lingering near-term caution, but the broader technical summary shifts to ‘Strong Buy,’ corroborated by the alignment of multiple moving averages.
• Moving Averages:
• MA5 (Buy), MA20 (Buy), MA200 (Buy): All sit at or just below the current price, acting as dynamic support—indicative of a solid technical foundation.
• MA50 (Sell): Suggests short-term retracement; convergence between MA50 and faster averages is often a precursor to a trend shift.

Support, Resistance & Momentum

• Key Support: PKR 525 (recent day’s low) serves as a robust floor, historically reliable for accumulation phases.
• Resistance: PKR 534 (recent day’s high) and the 52-week ceiling at PKR 699 are milestones to watch for the next leg up.
• Circuit Breaker Zone: PKR 472.97–578.07. This volatility corridor may amplify momentum once breached. The setup is conducive for a technical bounce, with a rising possibility of a medium-term trend reversal.

Fundamental Analysis

Robust Fundamentals and Structural Strengths

• Valuation: POL’s P/E (5.79x) and P/B (1.5x) are well below both local and emerging-market sector averages, highlighting an attractive risk/reward asymmetry, especially given its consistent profitability.
• Market Cap and Float: With PKR 150.35 billion in market cap and nearly 46% free float, POL attracts substantial institutional interest and maintains excellent liquidity (daily volume: 226,248 shares).
• Dividend Consistency: An 18.08% yield and a historic 80% payout ratio, unparalleled among regional peers, embed downside protection for investors seeking stable returns.
• Dominance and Unique Value Proposition:
• Production Growth: Jhandial field’s expansion and new well activation (Razgir, Makori Deep-3) signal a sustainable path for revenue and profit growth.
• Cash Reserves: A PKR 102 billion cash pile (covering over two-thirds of market capitalization) is a rare asset, granting exceptional financial flexibility—whether for capex, M&A or continued high dividends.
• Operational Integration: Vertical integration across exploration, production, and LPG marketing sets POL apart from less diversified competitors.

Market Position & Volume Analysis

• Liquidity: High daily volumes ensure minimal slippage and tactically efficient entry/exit—even for sizeable orders in AE markets.
• Dominant Position: With 65% of its oil production sourced from the prolific TAL Block and significant exposure to long-life fields like Makori East and Adhi, the company stands as a benchmark for sustainable output in Pakistan.
• Competitive Edge: Strategic assets, strong balance sheet, and sector-dominant yield combine to place POL in the upper tier among listed regional energy names.

Catalysts and Favourable Outlook

• Operational Growth: Ongoing drilling and new fields support multi-year growth in reserves and output.
• Dividend Continuity: Predictable semi-annual payouts enhance investor visibility and reduce perceived risk.
• Regulatory Prospects: While legal and regulatory risks exist (notably regarding gas pricing policy), any favourable resolution on incentive disputes could trigger swift valuation upgrades.
• Macro Tailwind: Stabilizing PKR and pro-investor sector policy in Pakistan further underpin POL’s re-rating potential.

Investment Strategies Across Horizons

Short-term Positioning

• Technical Setup: Tactical buying on dips near PKR 525 support offers a compelling near-term asymmetric entry, particularly as signals suggest bottoming and a possible MACD crossover.
• Event-driven Catalysts: Anticipate sharp moves around new field news or protocol updates. Triggers such as positive court outcomes or drilling success could act as accelerants.

Medium-term Perspective

• Dividend Capture: Investors can ride high dividend cycles, leveraging both yield and potential price appreciation.
• Growth Visibility: The next 6–12 months will see output ramp-up from new wells, translating into higher earnings momentum and likely unlocking upside from the PKR 611–750 analyst target band.

Long-term Conviction

• Capital Appreciation + Income: Multi-year holders benefit from a compounding effect—recurrent and rising dividends alongside improving capital metrics.
• Optionality: Ample cash reserves keep balance sheet risk low, allowing flexibility to weather commodity cycles and fund new ventures or acquisitions.

POL Price Forecast (2025–2029)

Is Now the Right Time to Consider POL?

In summary, Pakistan Oilfields Limited stands out as an undervalued, high-cash, dividend-rich stock with strengthening technicals and a clear path to growth. Key strengths include:

• Exceptional dividend yield with a long-standing 80%+ payout ratio and robust coverage.
• Solid asset base and field productivity—with material growth drivers from new wells and field expansions.
• Strong financials, liquidity, and market positioning—all underpinning downside protection and upside leverage.
• Favourable technical set-up suggests proximity to a possible inflection in price momentum, reinforced by tactical supports.

With the prospect of operational catalysts, further field developments, and a policy environment that could add tailwinds, POL appears to represent an excellent opportunity for value, income, and growth-oriented investors in the current cycle. The stock’s unique blend of exceptional yield, sound fundamentals, and sector positioning means that POL could well be entering a new bullish phase.

POL remains a high-volatility security, demanding disciplined risk management—but the evolving price action shows POL's ability to deliver decisive moves for active investors. The outlook is positive: with technical support at 525 PKR and a key resistance at 534 PKR, the next major protocol or regulatory event—projected for Q2 2025—could be the catalyst that sets the stage for POL's next major move upward. For those seeking robust yields and long-term sector growth, POL’s conviction thesis appears well-supported and timely to revisit.

How to buy POL?

It is simple and secure for investors in the United Arab Emirates to buy Pakistan Oilfields Limited (POL) shares online through regulated financial platforms. Two main methods are available: spot purchasing (where you own the actual stock) and trading via CFDs (Contracts for Difference), which speculate on price movements without direct ownership. Each method has its own features and associated costs. To choose the most suitable investment solution, we encourage you to review our detailed platform comparison available further down this page.

Spot Purchase of POL Shares

Spot purchase means buying POL shares directly on the stock market, giving you actual ownership. Your shares are held in your securities account, and you’ll benefit from dividends and capital appreciation. Typical costs include a fixed commission per transaction—on UAE platforms, this is often around AED 15–20 or 0.2% of the amount invested.

Example

Suppose the current POL price is PKR 530 per share (about AED 7). With AED 1,000, you can buy approximately 142 shares (before fees). After including a transaction fee of AED 20, your total investment is AED 1,020.

Profit Scenario

If POL’s price rises by 10% (from AED 7 to AED 7.70), your shares are now worth AED 1,100.
Result: AED +100 gross profit, which is +10% on your initial investment.

Trading via CFD on POL

Trading POL via CFDs means you’re speculating on price changes without owning the actual shares. This method allows you to use leverage, multiplying your exposure, but it comes with higher risk. Common costs are the “spread” (difference between buy and sell price), plus overnight funding fees if your position is open after market hours.

Example

You open a CFD position on POL with AED 1,000 and a 5x leverage. Your market exposure is equivalent to AED 5,000.

Profit Scenario

If POL’s price climbs 8%, your position gains 8% × 5 = 40%.
Result: AED +400 gain on your AED 1,000 deposit (excluding costs).

Final Advice

Always compare the fees, products offered, and account conditions before choosing your investment platform. The right method for you depends on your financial goals, risk appetite, and investment experience. For your convenience, a detailed platform comparator is available below on this page.

Our 7 tips for buying POL

The latest news from the POL

Pakistan Oilfields Limited offers an exceptional 18.08% dividend yield with a strong track record of payouts. This robust income stream is supported by a semi-annual payout structure and an 80% historical payout ratio over the last five years, which is highly attractive for income-focused investors in the AE region looking for stable and significant cash returns. The company’s latest ex-dividend date was February 6, 2025, and with such high yields, POL continues to stand out among listed oil & gas equities in emerging markets, making it a compelling candidate for portfolio diversification strategies targeting regular income flows.

POL's latest financial results reflect resilient profitability and margin strength despite sectoral volatility. For Q3 FY2025, Pakistan Oilfields posted revenues of PKR 14.55 billion with a net profit after tax of PKR 6.61 billion, resulting in a quarterly EPS of PKR 23.29. Annual figures for FY2024 reinforce this trend, with gross profit margins at 69.53% and net margins almost 60%, indicating robust operational efficiency and cost management. Such financial resilience is particularly relevant for AE institutional and private investors seeking exposure to stable upstream oil & gas cash generators in South Asia.

Analyst consensus remains strongly bullish, projecting a 29% upside and reaffirming POL's status as undervalued. The stock’s P/E ratio stands at 5.79x, notably undercutting both regional and sectoral averages, while the average analyst price target of PKR 685.25 represents nearly a 30% upside from current levels. All five covering analysts rate POL as a strong buy, reflecting deep confidence in the company's fundamentals and growth prospects. This is particularly pertinent for AE-based investment funds and asset managers searching for value opportunities in established, dividend-rich companies with credible upside potential.

Substantial production growth in key fields underpins forward-looking growth, backed by a PKR 102 billion cash reserve. The Jhandial field has demonstrated a remarkable increase in oil production––from 118 bbl/day to 814 bbl/day year-on-year, and gas output has surged by 471% over the same period, supporting near- and medium-term earnings stability. New field developments, such as Razgir and Makori Deep-3, further strengthen POL’s production pipeline. The company’s substantial cash position (PKR 102 billion) enhances its ability to fund capital projects, manage risks, and support future dividends, attributes appealing to AE investors focused on capital preservation and growth.

POL’s integrated business model and dominant market positioning enhance its attractiveness for regional partnership or offshore listing initiatives. With 65% of oil produced from the prestigious TAL Block, a vertically integrated operation (exploration, production, and LPG marketing), and strong control over strategic reserves, POL is strategically poised for sustainable operation and expansion. This market leadership is especially relevant for AE corporate investors or energy-sector conglomerates interested in strategic partnerships, cross-border investments, or exploring joint ventures in one of South Asia’s most stable oil & gas producers.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.