Oil & Gas Development Company Limited (OGDC) announced its financial result today, posting a profit after tax of PKR 43,161mn (EPS: PKR 10.04) during 3QFY22 compared to PKR 24,121mn (EPS: PKR 5.61) in 3QFY21, witnessing a massive jump of 79% YoY. Similarly, earnings in 9MFY22 settled at PKR 112,044mn (EPS: PKR 26.05), up by 69% YoY. Alongside the result, the company announced a cash dividend of PKR 1.00/share (PKR 4.75/share in 9MFY22).
· Topline in 3QFY22 ascended by 36% YoY, arriving at PKR 89,104mn in contrast to PKR 65,402mn in SPLY amid i) 66% YoY hike in oil prices, and ii) 11% YoY Pak Rupee depreciation against USD. However, oil and gas production dropped by 7% and 9% YoY, respectively in 3QFY22. On a cumulative basis, net sales climbed up by 36% YoY, clocking-in at PKR 240,267mn in 9MFY22. This growth comes on the back of jump in oil prices by 72% YoY led by resurgence of oil demand internationally.
· The exploration cost settled at PKR 2,800mn in 3QFY22, plunging by 50% YoY owed to lower cost of dry wells (two dry wells incurred during the quarter). With this, exploration costs during 9MFY22 arrived at PKR 9,693mn, down by 10% YoY.
· Other income in 3QFY22 swelled up by 5.1x YoY, clocking-in at PKR 8,351mn against PKR 1,627mn in SPLY, on account of exchange gain on foreign currency account along with higher interest income on cash and cash equivalents. With this, other income during 9MFY22 reached PKR 29,587mn, up by 3.6x YoY.
· The company booked effective taxation at 33% in 3QFY22 vis-à-vis 31% in 3QFY21.
Courtesy – AHL Research