Oil and Gas Development Company Limited (OGDC) is expected to announce the financial result for 9MFY21 on 26th Apr’21, where we expect the company’s earnings to clock-in at PKR 68,242mn (EPS: PKR 15.87), down by 18% YoY. The fall is anticipated owing to i) drop in oil prices by 19% YoY given weak oil demand internationally, and ii) 3% and 7% YoY dip in oil and gas production, respectively.

On a quarterly basis, profitability is forecast to arrive at PKR 26,017mn (EPS: PKR 6.05) in 3QFY21 compared to PKR 30,460mn (EPS: PKR 7.08) in 3QFY20, depicting a drop of 15% YoY. This comes on the back of decrease in oil and gas production by 1% and 9% YoY, respectively.

Whereas during 3QFY21, oil prices staged a recovery climbing up by 12% YoY. Moreover, exploration cost is expected to tumble by 19% YoY, arriving at PKR 2,497mn in 3QFY21 amid two dry wells (Nangpir-01 and Qadirpur Deep X-01) incurred during the quarter against three dry wells in SPLY. Alongside the result, we anticipate the company to announce a cash dividend of PKR 2.00/share in 3QFY21 (PKR 5.60/share in 9MFY21).

Courtesy – AHL Research