Oil and Gas Development Company announces a cash dividend of PKR 1.80/share

Oil & Gas Development Company Limited (OGDC) announced its financial result today, posting a Profit after Tax of PKR 24,121mn (EPS: PKR 5.61) during 3QFY21 compared to PKR 30,011mn (EPS: PKR 6.98) in 3QFY20, plummeting by 20% YoY. Likewise, bottom-line in 9MFY21 clocked-in at PKR 66,346mn (EPS: PKR 15.43), down by 20% YoY. Alongside the result, the company announced a cash dividend of PKR 1.80/share (PKR 5.40/share in 9MFY21). 

Result Highlights

·        Net Sales in 3QFY21 depicted a growth of 5% YoY, settling at PKR  65,402mn in contrast to PKR 61,995mn in SPLY given 12% YoY jump in oil prices. Meanwhile, oil and gas production witnessed a drop of 1% and 9% YoY, respectively. On a cumulative basis, revenue declined by 7% YoY, arriving at PKR 176,382mn. This plunge comes on the back of i) fall in oil prices by 19% YoY and ii) plunge in oil & gas production by 3% and 7% YoY, respectively.

·        The exploration cost arrived at PKR 5,587mn in 3QFY21, surging by 82% YoY amid two dry wells (Nangpir-01 and Qadirpur X-01) incurred followed by higher seismic activity during the quarter. With this, exploration costs during 9MFY21 comes out to be PKR 10,809mn, down by 20% YoY.

·        Other income in 3QFY21 portrayed a massive decline of 85% YoY, clocking-in at PKR 1,627mn against PKR 10,903mn in SPLY, owed to absence of exchange gain. Consequently, other income during 9MFY21 settled at PKR 8,225mn, down by 66% YoY.

·        The company booked effective taxation at 31% in 3QFY21 versus 32% in 3QFY20.

 Courtesy – AHL Research

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