Corporate result: OGDC profit jumps 50% to Rs85.3b

Increase comes on back of robust sales, surge in other income

KARACHI: Oil and Gas Development Company Limited's (OGDC) profit surged 50% to Rs85.3 billion in nine months ended March 31, 2019 due to robust sales, surge in other income and drop in cost of doing business.

The country's leading oil and gas exploration firm had booked the profit of Rs56.8 billion in the same period last year, the company said in a notification to the Pakistan Stock Exchange (PSX) on Friday.

Accordingly, the earnings per share surged to Rs19.84 in the under review period compared to Rs13.21 in the same period of last year.

The board of directors has recommended an interim cash dividend of Rs2.75 per share. This is in addition to interim dividend already paid at Rs5.75 per share. The new entitlement will be paid to the shareholders whose name will appear in the register of members on June 10, 2019.

OGDC's share price improved 0.79%, or Rs1.13, and closed at Rs144.93 with around two million shares changing hands at the PSX.

The net sales surged 30% to Rs192 billion compared to Rs147.7 billion. Other income increased 58% to Rs17.9 billion compared to Rs11.3 billion.

Share of profit in associate (net of taxation) increased 54.5% to Rs3.4 billion compared to Rs2.2 billion.

The exploration and prospecting expenditure dropped 42% Rs6.5 billion compared to Rs11.2 billion.

The finance costs remained flat at Rs1.3 billion.

In the third quarter ended March 31 alone, OGDCL's profit increased 41% to Rs28.5 billion (earnings per share of Rs6.64) compared to Rs20.2 billion (earnings per share of Rs4.68) in the same period of last year.



Revenue in the quarter witnessed a jump of 26% to Rs65.2 billion as compared to Rs51.7 billion in the same period last year, "amid 20% Pak rupee devaluation against US dollar and 4% uptick in gas production," Arif Habib Limited said in a post-result comment.

The company's exploration costs declined by 47% to Rs2 billion owing to one dry well (Wasan-1) reported in 3QFY19 against two dry wells 3QFY18.

Other income in 3QFY19 arrived at Rs6 billion compared to Rs4.6 billion, up by 31%, the brokerage house said.