OGDCL is likely to announce an interim cash dividend of PKR 2.25/share in 1QFY22

Oil & Gas Development Company Limited (OGDC) is scheduled to announced its 1QFY22’s financial result on 28th Oct’21, where we expect company’s profitability to clock-in at PKR 28,277mn (EPS: PKR 6.57) against PKR 23,344mn (EPS: PKR 5.43) in 1QFY21, up by 21% YoY. The surge in earnings is anticipated on the back of i) massive jump in oil prices by 70% YoY and ii) uptick in oil production by 4% YoY during 1QFY22.

Whereas, gas production plummeted by 10% YoY during the quarter. Furthermore, exploration costs are projected to descend by 9% YoY, settling at PKR 2,693mn in 1QFY22 given one dry well (Bago Phulphoto) reported during the quarter against three dry wells (Jun-01, Umair North West and Jatoi-01) in SPLY.

On sequential basis, 12% QoQ growth is expected in 1QFY22 owed to 9% QoQ growth in oil prices along with 2% QoQ higher oil production. In addition to this, we expect the company to announce an interim cash dividend of PKR 2.25/share in 1QFY22 (PKR 2.00/share in 1QFY21).

Courtesy – AHL Research

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