External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Thematic (Sector/Industry)

<ul><li>According to news reports, Pakistan is considering deferring 2-3 RLNG cargoes per month (29 in a year) from Qatar under its existing take-or-pay contracts for 9 cargoes per month to address the current gas surplus issues in the country.</li><li>Previously, OGRA in its reports had projected Pakistan gas demand (including RLNG) to surpass 6000mmcfd by 2026. However, due to various foreseeable and inevitable factors, demand/supply have contracted substantially to less than 4,000mmcfd.</li><li>We believe, if 2 cargoes of Qatar are sold in the international market or deferred beyond 2031, this will increase domestic E&Ps volumes to around 3000 mmcfd, suggesting around 70% of the volumes will be recovered.</li></ul>

According to news reports, Pakistan is considering deferring 2-3 RLNG cargoes per month (29 in a year) from Qatar under its existing take-or-pay contracts for 9 cargoes per month to address the current gas surplus issues in the country.Previously, OGRA in its reports had projected Pakistan gas demand (including RLNG) to surpass 6000mmcfd by 2026. However, due to various foreseeable and inevitable factors, demand/supply have contracted substantially to less than 4,000mmcfd.We believe, if 2 cargoes of Qatar are sold in the international market or deferred beyond 2031, this will increase domestic E&Ps volumes to around 3000 mmcfd, suggesting around 70% of the volumes will be recovered.

(Corrected) Pakistan Oil & Gas Exploration: Qatar Cargo Diversion to Help Lift Volumes

<ul><li>According to news reports, Pakistan is considering deferring 2-3 RLNG cargoes per month (29 in a year) from Qatar under its existing take-or-pay contracts for 9 cargoes per month to address the current gas surplus issues in the country.</li><li>Currently Pakistan’s indigenous gas supply stands at 2,770 mmcfd, based on the last six months avg, while RLNG imports average 936 mmcfd, taking the total supply to an average of 3,707 mmcfd.</li><li>We believe, if 2 cargoes of Qatar are sold in the international market or deferred beyond 2031, this will increase domestic E&amp;Ps volumes to around 3000 mmcfd, suggesting around 70% of the volumes will be recovered.</li></ul>

According to news reports, Pakistan is considering deferring 2-3 RLNG cargoes per month (29 in a year) from Qatar under its existing take-or-pay contracts for 9 cargoes per month to address the current gas surplus issues in the country.Currently Pakistan’s indigenous gas supply stands at 2,770 mmcfd, based on the last six months avg, while RLNG imports average 936 mmcfd, taking the total supply to an average of 3,707 mmcfd.We believe, if 2 cargoes of Qatar are sold in the international market or deferred beyond 2031, this will increase domestic E&amp;Ps volumes to around 3000 mmcfd, suggesting around 70% of the volumes will be recovered.

Pakistan Oil & Gas Exploration: Qatar Cargo Diversion To Help Lift Volumes

<ul><li>We expect Topline E&P universe to post an 8% YoY decline in earnings in 1QFY26, primarily due to a decline in hydrocarbon production and oil prices.</li><li>Oil production during the quarter averaged 62.2k bpd, down 5% YoY, while gas production fell 7% to around 2,807 mmcfd.</li><li>The expected fall in earnings is primarily attributable to a higher Effective Tax Rate (ETR), which is expected to normalize to around 35% in 1QFY26 vs. 26% in the previous quarter.</li></ul>

We expect Topline E&P universe to post an 8% YoY decline in earnings in 1QFY26, primarily due to a decline in hydrocarbon production and oil prices.Oil production during the quarter averaged 62.2k bpd, down 5% YoY, while gas production fell 7% to around 2,807 mmcfd.The expected fall in earnings is primarily attributable to a higher Effective Tax Rate (ETR), which is expected to normalize to around 35% in 1QFY26 vs. 26% in the previous quarter.

Pakistan Oil & Gas Exploration - E&Ps Profitability Likely To Decline By 8% YoY In 1QFY26; Market Weight Maintained

<ul><li>As per our channel checks and based on the invitation notice circulating on social media, the signing ceremony of the financing facility agreement for circular debt resolution is scheduled for Wednesday (Tomorrow), 24th September 2025, at the Prime Minister’s Office.</li><li>Previously, the government finalized a plan to borrow Rs1.25-1.275 trillion from banks to retire the power sector’s circular debt.</li><li>News flow suggest this Rs1.25tn will include restructuring of existing debt of Rs683bn held in balance sheet of Power Holding Limited (PHL) at KIBOR plus 2%, as per our channel checks and news reports.</li></ul>

As per our channel checks and based on the invitation notice circulating on social media, the signing ceremony of the financing facility agreement for circular debt resolution is scheduled for Wednesday (Tomorrow), 24th September 2025, at the Prime Minister’s Office.Previously, the government finalized a plan to borrow Rs1.25-1.275 trillion from banks to retire the power sector’s circular debt.News flow suggest this Rs1.25tn will include restructuring of existing debt of Rs683bn held in balance sheet of Power Holding Limited (PHL) at KIBOR plus 2%, as per our channel checks and news reports.

Topline Flash Note: Pakistan Power - Power Circular Debt: Financing Facility Signing Ceremony Will Take Place Tomorrow

Cross Asset Strategy

<ul><li>KSE-100 index companies posted earnings of Rs409bn in 3QFY25, up 2% YoY, while excluding Banks, profitability declined by 5% YoY to Rs243bn.</li><li>The banking sector's earnings increased by 14% YoY to Rs166bn, driven by an increase in both Net Interest Income and Non-Interest Income.</li><li>KSE 100 index companies announced cash dividends of Rs119bn, down 6% YoY, translating into a 29% dividend payout in 3QFY25.</li></ul>

KSE-100 index companies posted earnings of Rs409bn in 3QFY25, up 2% YoY, while excluding Banks, profitability declined by 5% YoY to Rs243bn.The banking sector's earnings increased by 14% YoY to Rs166bn, driven by an increase in both Net Interest Income and Non-Interest Income.KSE 100 index companies announced cash dividends of Rs119bn, down 6% YoY, translating into a 29% dividend payout in 3QFY25.

Pakistan Strategy – Corporate Profitability in 3QFY25; Earnings up 2%

Pakistan

Oil & Gas Development Co. Ltd. explores and develops oil and natural gas properties in Pakistan.

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Oil & Gas Development (OGDC PA)

(Corrected) Pakistan Oil & Gas Exploration: Qatar Cargo Diversion to Help Lift Volumes

According to news reports, Pakistan is considering deferring 2-3 RLNG cargoes per month (29 in a year) from Qatar under its existing take-or-pay...

Topline Securities

Pakistan Oil & Gas Exploration: Qatar Cargo Diversion To Help Lift Volumes

According to news reports, Pakistan is considering deferring 2-3 RLNG cargoes per month (29 in a year) from Qatar under its existing take-or-pay...

Topline Securities

Pakistan Oil & Gas Exploration - E&Ps Profitability Likely To Decline By 8% YoY In 1QFY26; Market Weight Maintained

We expect Topline E&P universe to post an 8% YoY decline in earnings in 1QFY26, primarily due to a decline in hydrocarbon production and oil...

Topline Securities

Topline Flash Note: Pakistan Power - Power Circular Debt: Financing Facility Signing Ceremony Will Take Place Tomorrow

As per our channel checks and based on the invitation notice circulating on social media, the signing ceremony of the financing facility agreement...

Topline Securities

Pakistan Strategy – Corporate Profitability in 3QFY25; Earnings up 2%

KSE-100 index companies posted earnings of Rs409bn in 3QFY25, up 2% YoY, while excluding Banks, profitability declined by 5% YoY to Rs243bn. The...

Topline Securities

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