Oil & Gas Development Company Limited (OGDC) announced its financial result today, posting a highest ever profit after tax of PKR 224,619mn (EPS: PKR 52.23) during FY23 compared to PKR 133,784mn (EPS: PKR 31.11) in FY22, showcasing a jump of 68% YoY. On a quarterly basis, earnings in 4QFY23 settled at PKR 64,979mn (EPS: PKR 15.11), augmenting by 3.0x YoY. Alongside the result, the company announced a cash dividend of PKR 2.75/share in 4QFY23 (PKR 8.55/share in FY23).

Result Highlights

· Topline in FY23 witnessed a growth by 23% YoY, arriving at PKR 413,594mn given PKR depreciation against USD by 28% YoY. Whereas, oil prices depicted a fall of 2% YoY. Meanwhile, during 4QFY23, net sales increased by 10% YoY, clocking in at PKR 104,446mn. The jump in revenue comes on account of weakening of the Pak Rupee against the greenback by 32% YoY. However, oil and gas production depicted a fall of 5% and 11% YoY, respectively in 3QFY23, while oil prices declined by 29% YoY.

· The exploration cost settled at PKR 19,024mn in FY23, up by 22% YoY owed to ascend dry well expenses. Whereas, in 4QFY23, exploration costs arrived at PKR 8,129mn, climbing up by 38% YoY given higher cost of dry well (Chak 20-1) compared to dry well (Bewato) in SPLY.

· Other income in FY23 showcased a hefty jump of 2.2x YoY, clocking-in at PKR 154,692mn owing to hefty exchange gain during the period. Whereas, the other income in 4QFY23 depicted hefty jump 5.2x YoY, reaching PKR 89,508mn. We await disclosure of detailed accounts in this regard.

· The company booked effective taxation at 50% in 4QFY23 vis-à-vis 65% in 4QFY22. The taxation during the quarter includes an additional 6% super tax levied on the profit before tax of FY23.

Courtesy – AHL Research