Oil & Gas Development Company Limited (OGDC) announced its financial result today, posting a Profit after Tax of PKR 25,188mn (EPS: PKR 5.86) during 4QFY21 against PKR 17,816mn (EPS: PKR 4.14) in 4QFY20, climbing up by 41% YoY. Whereas, earnings in FY21 settled at PKR 91,534mn (EPS: PKR 21.28), down by 9% YoY. Alongside the result, the company announced a final cash dividend of PKR 1.50/share (PKR 6.90/share in FY21).

Result Highlights

· Topline in 4QFY21 witnessed a jump of 44% YoY, clocking-in at PKR 62,722mn compared to PKR 43,478mn in SPLY amid i) growth in oil and gas production by 26% and 9% YoY, respectively and ii) hefty recovery in oil prices by 153% YoY given resurgence in global demand. On a cumulative basis, net sales depicted an uptick of 3% YoY, arriving at PKR 239,104mn. The growth comes on the back of i) hike in oil prices by 3% YoY and ii) increase in oil production by 2% YoY.

· The exploration cost settled at PKR 6,557mn in 4QFY21, surging by 39% YoY owed to two dry wells (Washuk and Kambir) incurred followed by higher seismic activity during the quarter. Consequently, exploration costs during FY21 comes out to be PKR 17,366mn, down by 5% YoY.

· Other income in 4QFY21 plunged by 41% YoY, clocking-in at PKR 5,754mn in contrast to PKR 9,817mn in SPLY, due to fall in interest income from cash and cash balances. With this, other income during FY21 arrived at PKR 13,979mn, down by 59% YoY.

· The company booked effective taxation at 22% in 4QFY21 versus 18% in 4QFY20.

Courtesy – AHL Research