OGDC is likely to announce a cash dividend of PKR 3.75/share in 3QFY22

Oil & Gas Development Company Limited (OGDC) is scheduled to announce its 9MFY22’s financial result on 28th Apr’22, where we expect earnings to settle at PKR 109,968mn (EPS: PKR 25.57), registering a hefty jump of 66% YoY.

The ascend in net profit is projected at the back of i) a surge in oil prices by 72% YoY amid a revival of oil demand internationally. On a quarterly basis, profitability is forecasted to clock in at PKR 41,086mn (EPS: PKR 9.55) in 3QFY22 in contrast to PKR 24,121mn (EPS: PKR 5.61) in 3QFY21, up by a massive by 70% YoY.

The growth is attributable to 66% YoY hike in oil prices along with an 11% YoY Pak Rupee depreciation against USD. Meanwhile, oil and gas production depicted a drop of 7% and 9% YoY, respectively. Furthermore, exploration cost is expected to fall by 50% YoY, settling at PKR 2,784mn in 3QFY22, given the lower cost of dry wells (two dry wells incurred during the quarter).

In addition to the result, we expect the company to announce a cash dividend of PKR 3.75/share in 3QFY22 (PKR 7.50/share in 9MFY22).

Courtesy – AHL Research.

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