Oil & Gas Development Company Limited (OGDC) announced its financial result today, posting an earnings of PKR 171,104mn (EPS: PKR 39.78) during 9MFY24, uptick of 7% YoY. The growth in net profit is attributable to the reversal of tax provisions worth PKR 28.2bn in 2QFY24 (which is due to favourable judgment from the court, related to depletion allowance). On a quarterly basis, the company’s profitability arrived at PKR 47,808mn (EPS: PKR 11.12), down by 26% YoY. Alongside the result, the company announced a cash dividend of PKR 2.00/share (PKR 6.10/share in 9MFY24).

Result Highlights

Topline in 9MFY24 ascended by 13% YoY, clocking in at PKR 348,164mn compared to PKR 309,148mn in SPLY owing to i) 2% YoY increase in oil production, and ii) PKR depreciation against USD by 17% YoY. During 3QFY24, the net sales inched up by 6% YoY, settling at PKR 112,789mn, amid i) 5% YoY jump in oil production, and ii) 1% YoY uptick in oil prices.

The exploration costs declined by 22% YoY to PKR 8,501mn in 9MFY24. Whereas, the exploration costs during 3QFY24 dwindled by 18% YoY, which is on account of the absence of a dry well during the quarter compared to one dry well (Bhamabra-2) reported in SPLY.

Other income clocked in at PKR 44,540mn in 9MFY24, down by 32% YoY. Whereas, other income during 3QFY24 arrived at PKR 17,271mn, witnessing a plunge of 54% YoY due to the absence of exchange gains during the quarter (~PKR 27.7bn worth of exchange gains recorded in 3QFY23).

The company booked effective taxation at 41% in 3QFY24 vis-à-vis 35% in 3QFY23.

Courtesy – AHL Research