Pakistan

Pakistan E&Ps: Unwarranted valuations despite cash-flow constraints

  • IMS E&P valuations stand unwarranted under higher oil price assumptions as earnings forecast jump 27-38%

  • More positives come from recent PKR devaluation while past liquidity issues can be resolved under energy reforms

  • Sporadic efforts by government to plug circular debt generation can unlock payouts and valuations

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November 11th, 2022
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The analyst certifies that the views expressed in the report reflect their personal views about the subject securities. He or she also certifies that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendations made in this report. He or she further certifies that they do not have any beneficial holding of the specific securities that they have recommendations on in this report.

Valuation Methodology: We use multiple valuation methodologies in arriving at a Target Price including, but not limited to, Discounted Cash Flow (DCF), Dividend Discount Model (DDM) and relative multiples based valuations.

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