Oil and Gas Development Company Limited (OGDC) announced its financial result today, posting a profit after tax (PAT) of PKR 53,303mn (EPS: PKR 12.39) in 1QFY23 compared to PKR 33,629mn (EPS: PKR 7.82) in 1QFY22, up by 58% YoY. Alongside the result, the company announced an interim cash dividend of PKR 1.75/share in 1QFY23 (PKR 1.75/share in 1QFY22).
· Net sales settled at PKR 106,012mn in 1QFY23 against PKR 71,531mn in SPLY, up by 48% YoY, on the back of i) a hefty increase in oil prices by 43% YoY, and ii) Pak Rupee deprecation against the greenback by 26% YoY. Whereas, oil and gas production depleted by 10% and 9% YoY, respectively during the quarter. On a sequential basis, the topline ascended by 11% given i) 5% QoQ growth in oil production, and ii) PKR devaluation against USD by 13% YoY.
· Exploration costs declined by 32% YoY arriving at PKR 1,545mn in 1QFY23 due to the absence of a dry well during the quarter. Whereas on a QoQ basis, exploration costs plunged by 74% given the higher cost of dry well (Bewato 01) during the last quarter.
· Other income in 1QFY23 settled at PKR 18,504mn versus PKR 10,878mn in SPLY, significantly up 70% YoY, owed exchange gain on foreign currency coupled with higher income from cash and cash balances. Similarly, other income on a QoQ basis climbed up by 9% due to the aforementioned reason.
· The company booked effective taxation at 40% in 1QFY23 vis-à-vis 36% in 1QFY22. The taxation during this quarter includes super tax of 4% imposed on profit before tax of 1QFY23.
Courtesy – AHL Research