Oil & Gas Development Company Limited (OGDC) announced its financial result today, posting a profit after tax of PKR 159,639mn (EPS: PKR 37.12) during 9MFY23 compared to PKR 112,044mn (EPS: PKR 26.05) in 9MFY22, depicting a jump of 42% YoY. On a quarterly basis, earnings in 3QFY23 settled at PKR 64,627mn (EPS: PKR 15.03), swelling up by 50% YoY. Alongside the result, the company announced a cash dividend of PKR 1.80/share in 3QFY23 (PKR 5.80/share in 9MFY23).

Result Highlights

· Topline in 9MFY23 witnessed a growth by 29% YoY, arriving at PKR 309,148mn given i) higher oil prices (up by 10% YoY), and, ii) PKR depreciation against USD by 27% YoY. Meanwhile, during 3QFY23, net sales increased by 19% YoY, clocking in at PKR 105,913mn. The ascend in revenue is attributable to the weakening of the Pak Rupee against the greenback by 32% YoY. However, oil and gas production depicted a fall of 5% and 13% YoY, respectively in 3QFY23, while oil prices declined by 18% YoY.

· The exploration cost settled at PKR 10,895mn in 9MFY23, up by 12% YoY owed to swelling up of dry well expenses. Whereas, in 3QFY23, exploration costs arrived at PKR 4,246mn, up by 52% YoY given higher cost of dry well (Bhambra-02) during the quarter tagged with higher seismic activities.

· Other income in 9MFY23 showcased a hefty jump of 120% YoY, clocking-in at PKR 65,184mn. Whereas, the other income in 3QFY23 depicted a massive increase of 4.5x YoY, reaching PKR 37,446mn owed to massive exchange gain of ~PKR 23.6bn during the quarter coupled with higher interest income on cash and cash equivalents.

· The company booked effective taxation at 35% in 3QFY23 vis-à-vis 33% in 3QFY22.

Courtesy- AHL Research