Energy demand never falls and it seems, neither do the profits of its industry. Oil and Gas Development Company beat all estimates by posting a 42% increase in profits in the first nine months of fiscal 2012.
The country’s largest oil and gas explorer’s profits stood at Rs69.24 billion during July 2011 to March 2012, surpassing the profits made in the entire financial year 2011.
These financial results would have been better had there been no production losses due to torrential rains and floods in the country during September 2011 and unfavorable security situation in some of the company’s operational areas, the company said in a statement on its official website.
The result beat market expectation by more than Rs3 billion as analysts estimated net profit to stand on average around Rs65.5 billion.
Terming the results successful, OGDCL CEO Basharat Mirza in a post-result statement wrote that the growth is primarily attributable to higher prices of crude oil, gas and LPG and increase in its sales volume.
The company’s net gas production increased significantly by 6.7% owing to start-up of gas production from KPD Phase-I coupled with increase in gas production from some of its operated fields and increase in share of gas from non-operated joint venture fields, Mirza said. Average price of crude oil sold was $84.46 per barrel against $67.47 per barrel during the corresponding period last year while average price for natural gas sold was Rs222.44/Mcf against Rs215.22 during the corresponding period last year. The increase in these fuels and its prices took net sales up 16% to Rs142 billion.
The board of directors recommended a third interim cash dividend of Rs 1.50 per share, taking the total payout of the year to Rs4.5 per ordinary share of Rs10.
Published in The Express Tribune, April 28th, 2012.
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