Oil & Gas Development Company Limited (OGDC) is scheduled to announced its 1HFY22’s financial result on 23rd Feb’22, where we expect earnings to clock-in at PKR 67,730mn (EPS: PKR 15.75), up by 60% YoY. The jump in net profit is anticipated given i) hefty surge in oil prices by 77% YoY led by resurgence of oil demand internationally, and ii) 1% YoY uptick in oil production. On a sequential basis, profitability is forecast to settle at PKR 34,101mn (EPS: PKR 7.93) in 2QFY22 vis-à-vis PKR 18,882mn (EPS: PKR 4.39) in 2QFY21, up by a massive by 81% YoY.
The growth comes on the back of 83% YoY hike in oil prices tagged with 8% YoY Pak Rupee depreciation. Whereas, gas production witnessed a dip of 2% YoY. Furthermore, exploration cost is projected to climb up by 29% YoY, settling at PKR 2,921mn in 2QFY22 amid dry well Seni Gumbat incurred during the quarter.
Alongside the result, we expect the company to announce a cash dividend of PKR 2.50/share in 2QFY22 (PKR 4.25/share in 1HFY22).
Courtesy – AHL Research