Oil & Gas Development Company Limited (OGDC) announced its financial result today, posting earnings of PKR 208,976mn (EPS: PKR 48.59) during FY24, down by 7% YoY. On a quarterly basis, the company’s profitability arrived at PKR 37,872mn (EPS: PKR 8.81), plummeting by 42% YoY. Alongside the result, the company announced a final cash dividend of PKR 4.00/share (PKR 10.10/share in FY24).

Result Highlights       

• Topline in FY24 climbed up by 12% YoY, clocking in at PKR 463,698mn compared to PKR 413,594mn in SPLY, owing to i) 2% YoY increase in oil production, and ii) PKR depreciation against USD by 12% YoY. During 4QFY24, the net sales increased by 11% YoY, settling at PKR 115,534mn, amid i) 5% YoY jump in oil production, and ii) 9% YoY hike in oil prices.
• The exploration costs declined by 34% YoY to PKR 12,561mn in FY24. Whereas, the exploration costs during 4QFY24 dwindled by 50% YoY, which is on account of lower cost of dry well “Badhra Dir-16” compared to dry well “Chak 20-01” in SPLY.
• Other income clocked in at PKR 41,344mn in FY24, down by 73% YoY. Whereas, the company recorded other expense of PKR 3,197mn in 4QFY24 compared to other income of PKR 89,508mn in SPLY, owing to i) exchange loss on Pak Rupee appreciation, and ii) one-off gain on modification of finance lease of Uch Power Limited I in 4QFY23.
• The company booked effective taxation at 30% in 4QFY24 vis-à-vis 50% in 4QFY23.

Courtesy – AHL Research