KARACHI: Oil and Gas Development Company (OGDC) reported a 7% rise in profit to Rs30.46 billion for the quarter ended March 31, 2020, mainly due to a marked increase in other income as revenues remained almost flat.
The oil exploration and production company had posted a profit of Rs28.56 billion in the same quarter of previous year, according to a notice sent by the company to the Pakistan Stock Exchange (PSX) on Friday.
Earnings per share of the company rose to Rs7.08 during the Jan-Mar 2020 quarter as opposed to Rs6.64 in the same quarter of previous year.
Net sales fell from Rs65.15 billion in the Jan-Mar quarter of last year to Rs64.97 billion during the same quarter of this year.
"Topline in 3QFY20 registered a meagre decline, which was attributable to 5% and 14% year-on-year drop in oil and gas production respectively, and 16% fall in oil prices," stated a report of Arif Habib Limited (AHL).
Operating expenses of the company increased to Rs15.8 billion in Jan-Mar 2020 from Rs15.4 billion in the corresponding quarter of previous year, a rise of 3%.
The company's exploration cost soared 51% to Rs3.07 billion during the period under review against Rs2.04 billion in the same period of last year.
The surge in exploration cost came on the back of three dry wells (Katiar-01, Rangunwari-01 and Nashpa-5A), the AHL report said.
Other income of the company escalated 46% to Rs8.79 billion during the Jan-Mar 2020 quarter. The company had reported other income of Rs6 billion in the same period of previous year.
"Other income jumped on the back of exchange gains on foreign currency accounts," the report elaborated.
According to the research house, the company booked effective taxation of 32% in the quarter under review versus 34% in the corresponding quarter of last year.
During the day, the company's share price recorded a gain of Rs0.12 to close at Rs95.27 with 4.05 million shares changing hands at the PSX.
OGDC reported a 2% fall in profit to Rs83.65 billion in nine months ended March 31, 2020. The company had reported a profit of Rs85.31 billion in the corresponding period of previous fiscal year.
Earnings per share came in at Rs19.45 against Rs19.84 in the same period of previous year.
Published in The Express Tribune, April 25th, 2020.
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