OGDC's profit surges 50% to Rs118b

Earnings rise due to higher global oil and gas prices, rupee fall

Earnings rise due to higher global oil and gas prices, rupee fall. PHOTO: REUTERS

KARACHI:
Oil and Gas Development Company's (OGDC) profit surged 50% to Rs118.38 billion in the year ended June 30, 2019 on the back of higher international oil and gas prices, rupee depreciation and hike in interest rate.

The state-owned oil and gas exploration firm had registered a profit of Rs78.74 billion in the previous year, according to a company notification sent to the Pakistan Stock Exchange (PSX) on Wednesday.

Earnings per share surged to Rs27.53 in FY19 compared to Rs18.31 in the previous year.

The board of directors recommended a final cash dividend of Rs2.50 per share. It was in addition to the interim dividend of Rs8.5 per share that had already been paid. The new entitlement will be paid to the shareholders whose names appear in the register of members on October 17, 2019.

OGDC's share price dropped Rs1.56, or 1.24%, to Rs124.59 with trading in 4.64 million shares at the PSX.

The company's net sales of oil and gas deposits surged 27% to Rs261.48 billion in FY19 compared to Rs205.34 billion last year.


"The surge in sales in rupee terms is attributable to higher oil and gas prices, coupled with 19% depreciation of the rupee against the US dollar," said Arif Habib Limited in post-result comments.

"However, oil and gas production showed a meagre decline of 1% each to 40,810 bopd (barrels of oil per day) and 1,014 mmcfd (million cubic feet per day of gas)," the research house said.

Average realised oil prices came in at $58.74 per barrel in FY19 as compared to $54.56 per barrel last year. Similarly, the realised gas price was set at Rs336.62 per million cubic feet (mcf) as compared to Rs258.93 per mcf last year, it said.

Other income doubled to Rs32.28 billion compared to Rs16 billion in the previous year. "Other income recorded a massive increase…following higher interest rates (at an eight-year high at 13.25%) and recognition of exchange gains," BIPL Securities said.

The exploration and prospecting expenditure dropped 23% to Rs12.49 billion in FY19 compared to Rs16.19 billion last year.

Finance cost trimmed to Rs1.69 billion compared to Rs1.73 billion in the previous year.
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