Oil and Gas Development Company Limited (OGDC) is expected to announce financial result of FY21 on 27th Sep’21, where we expect the company to post a Profit after Tax of PKR 94,395mn (EPS: PKR 21.95) in FY21 vis-à-vis PKR 100,082mn (EPS: PKR 23.27) recorded in SPLY, down by 6% YoY. The dip is expected on the back of drop in gas production by 4% YoY. Meanwhile, oil production witnessed an uptick of 2% YoY. On a quarterly basis, bottom-line is anticipated to clock-in at PKR 28,048mn (EPS: PKR 6.52) in 4QFY21 compared to PKR 16,959mn (EPS: PKR 3.94) in 4QFY20, up by a massive 65% YoY. The surge in earnings comes on the back of i) growth in oil and gas production by 26% and 9% YoY, respectively and ii) hefty recovery in oil prices by 153% YoY owed to resurgence in global demand. Furthermore, exploration cost is expected to jump up by 8% YoY, arriving at PKR 5,076mn in 4QFY21 given two dry wells (Washuk and Kambir) reported during the quarter. Alongside the result, we expect the company to announce a final cash dividend of PKR 4.00/share in 4QFY21 (PKR 9.40/share in FY21).

Courtesy – AHL Research