Oil & Gas Development Company Limited (OGDC) announced its financial result today, posting a profit after tax of PKR 95,012mn (EPS: PKR 22.09) during 1HFY23 compared to PKR 68,883mn (EPS: PKR 16.02) in 1HFY22, showing a growth of 38% YoY. On a quarterly basis, earnings in 2QFY23 settled at PKR 41,709mn (EPS: PKR 9.70), up by 18% YoY. Alongside the result, the company announced a cash dividend of PKR 2.25/share in 2QFY23 (PKR 4.00/share in 1HFY23).
· Topline in 1HFY23 ascended by 34% YoY, arriving at PKR 203,236mn in contrast to PKR 151,163mn in 1HFY22 amid i) higher oil prices (up by 27% YoY), and, ii) PKR depreciation against USD by 24% YoY. Meanwhile, during 2QFY23, net sales grew by 22% YoY, clocking-in at PKR 97,223mn in 2QFY23. This increase comes on the back of jump in oil prices by 13% YoY tagged with a weak Pak Rupee. However, oil and gas production dropped by 10% and 8% YoY, respectively in 2QFY23.
· The exploration cost settled at PKR 6,649mn in 1HFY23, down by 4% YoY owed to higher cost of dry wells in 1HFY22. Whereas, in 2QFY23, exploration costs arrived at PKR 5,104mn, up by 11% YoY as two dry wells (Sundha Thal-1 and Shahpurabad-1) incurred during the quarter compared to one dry well (Seni Gumbat) in SPLY.
· Other income in 1HFY23 surged by 31% YoY, clocking-in at PKR 27,738mn against PKR 21,237mn in SPLY, on account of exchange gain on foreign currency account tagged with higher interest income on cash and cash equivalents. However, the other income in 2QFY23 depicted a decline of 11% YoY, reaching PKR 9,234mn owed to absence of exchange gain.
· The company booked effective taxation at 35% in 2QFY23 vis-à-vis 33% in 2QFY22.
Courtesy- AHL Research