Oil & Gas Development Company Limited (OGDC) posted a profit after tax of PKR 133,784mn (EPS: PKR 31.11) during FY22 against PKR 91,534mn (EPS: PKR 21.28) in FY21, witnessing a jump of 46% YoY. Whereas, net profit during 4QFY22 settled at PKR 21,740mn (EPS: PKR 5.05), down by 14% YoY due to imposition of super tax during the quarter. Along with the result, the company announced a final cash dividend of PKR 2.50/share (PKR 7.25/share in FY22).

Result Highlights

· Net sales during FY22 swelled up by 40% YoY, arriving at PKR 335,464mn on account of i) surge in oil prices by 71% YoY given a resumption of oil demand internationally, and ii) Pak Rupee depreciation against USD by 10% YoY. However, oil and gas production dipped by 4% and 6% YoY, respectively. On a quarterly basis, topline climbed up by 52% YoY, clocking-in at PKR 95,196mn in 4QFY22 amid i) 20% YoY PKR depreciation against USD, and ii) hefty surge of 67% YoY in oil prices.

· Exploration costs fell by 10% YoY in FY22 given five dry wells during the year compared to eight dry wells in FY21. Meanwhile, exploration cost in 4QFY22 went down by 10% YoY owed to one dry well (Bewato-01) compared to two dry wells in SPLY.

· Other income arrived at PKR 46,571mn in FY22 compared to PKR 13,979mn in SPLY, showcasing a massive growth of 3x YoY, due to recognition of exchange gains. During 4QFY22, other income clocked-in at PKR 16,983mn, up by 3x YoY due to the aforementioned reason.

· The company booked effective taxation at 65% in 4QFY22 vis-à-vis 22% in 4QFY21. The taxation during this quarter includes super tax imposed on profit before tax of FY22.

Courtesy – AHL Research