Oil & Gas Development Company Limited (OGDC) is scheduled to announced its FY22 financial result on 22nd Sep’22, where we expect earnings to settle at PKR 136,512mn (EPS: PKR 31.74), ascending by 49% YoY. The surge in net profit is forecast on account of i) higher oil prices, and ii) Pak Rupee depreciation against USD by 10% YoY.

On a quarterly basis, profitability is projected to clock-in at PKR 24,467mn (EPS: PKR 5.69) in 4QFY22 compared to PKR 25,188mn (EPS: PKR 5.86) in 4QFY21, down by 3% YoY. The decline is attributable to imposition of 10% super tax.

Furthermore, oil and gas production depicted a drop of 12% and 10% YoY, respectively. Albeit, exploration cost is expected to come down by 58% YoY, settling at PKR 2,754mn in 4QFY22 owed to one dry well (Bewato-01) compared to two dry wells in SPLY. In addition to the result, we expect the company to announce a cash dividend of PKR 3.00/share (PKR 7.75/share in FY22).

Courtesy – AHL Research