Oil and Gas Development Company Limited (OGDC) announced its financial result today, posting a profit after tax (PAT) of PKR 33,629mn (EPS: PKR 7.82) in 1QFY22 in contrast to PKR 23,344mn (EPS: PKR 5.43) in 1QFY21, up by 44% YoY. Alongside the result, the company announced an interim cash dividend of PKR 1.75/share for 1QFY22 (PKR 2.00 in 1QFY21).

Result Highlights

· Topline clocked-in at PKR 71,531mn in 1QFY22 against PKR 56,347mn in SPLY, up by 27% YoY, on the back of i) a massive 70% YoY jump in oil prices, and ii) 4% YoY growth in oil production. Whereas, gas production plummeted by 10% YoY during the quarter. On a sequential basis, net sales ascended by 14% given 9% QoQ growth in oil prices along 2% QoQ higher oil production.

· The exploration costs declined by 23% YoY arriving at PKR 2,283mn in 1QFY22 given dry well (Bago Phulphoto) reported during the quarter compared to three dry wells (Jun-01, Umair North West and Jatoi-01) incurred in SPLY. Whereas on QoQ basis, exploration costs plunged by 65% given two drys (Washuk-01 and Kambir) and higher seismic activity incurred in 4QFY21.

· Other income in 1QFY22 settled at PKR 10,878mn versus PKR 5,958mn in SPLY, significantly up 83% YoY, amid exchange gain on foreign currency tagged with higher income from cash and cash balances. Similarly, other income on QoQ basis climbed up by 89% due to USD appreciation against PKR.

· The company booked effective taxation at 36% in 1QFY22 vis-à-vis 31% in 1QFY21.

Courtesy – AHL Research