The management of Oil & Gas Development Company Limited (OGDC) held a corporate briefing session on 24th Nov’22 to discuss the company’s financial performance and future outlook.
· To recall, the company posted a profit after tax of PKR 133,784mn (EPS: PKR 31.11), witnessing a surge of 46% YoY owed to higher oil prices and Pak Rupee depreciation against the greenback. Whereas the company’s earning in 1QFY23 arrived at PKR 53,303mn (EPS: PKR 12.39), up by 58% due to the reasons above.
· The management said that the company has 57 and 111 exploration and development and production licenses, respectively.
· As of 30th Jun’22, the company’s market share in Pakistan’s oil and gas production is 47% and 29%, respectively.
· The company made seven oil and gas discoveries during FY22.
· The management said that oil and gas production in FY22 witnessed a decline of 4.3% and 5.2% YoY due to natural decline at major fields such as Nashpa, Chanda, Qadirpur, Rajian and KPD-TAY. The company is conducting workover jobs and developing compression projects to arrest the decline.
· The management said the company is in talks with the government to resolve the circular debt. The management expects the circular debt issue to be resolved soon.
· Regarding the Wali-01 well, the management said that the well is a major hydrocarbon discovery. The pipeline is expected to be quickly laid to connect the gas field to the transmission network. The management expects the well to come online in Jan’23.
· Upon a question related to Abu Dhabi Offshore Block 5, the management said that major seismic activity has been completed, and drilling of the maiden well is expected in the coming six months
· The management said that the company is considering all options for diversification, including energy and power. Moreover, the management believes Reko Diq Project will support the company’s diversification strategy.
Courtesy – AHL Research