OGDC’s profit surges 87% to Rs35.3b
PHOTO: FILE
Oil and Gas Development Company’s (OGDC) profit after tax soared 87% to Rs35.3 billion in October-December 2021 owing to an exponential surge in other income.
According to a notice sent to the Pakistan Stock Exchange, the oil and gas exploration firm had reported a profit of Rs18.9 billion in the same period of 2020.
Earnings per share of the company rose from Rs4.39 in the October-December quarter of 2020 to Rs8.20 in the quarter under review.
In addition to the result, the company announced a cash dividend of Rs2 per share, which took the total payout to Rs3.75 per share in the first half of fiscal year 2021-22.
Net sales of the enterprise rose to Rs79.6 billion in October-December 2021 against Rs54.6 billion in the same quarter of 2020, a jump of 46%. Arif Habib Limited analyst Muhammad Iqbal Jawaid said that net sales climbed up on account of 83% year-on-year hike in oil prices and 8% year-on-year rupee depreciation against the dollar.
“On the other hand, gas production registered a dip of 2% year-on-year,” he said.
The firm witnessed 8% uptick in its operating expenses that rose from Rs16.4 billion in the October-December quarter of 2020 to Rs17.8 billion in the same period of 2021.
During the quarter under review, OGDC’s transportation charges came in at Rs654.7 million, which was 7.94% higher than Rs606.5 million in the same quarter of previous year.
Exploration cost skyrocketed 103% to Rs4.6 billion. The company had paid Rs2.3 billion under the same head in the corresponding period of 2020.
The exploration cost swelled owing to a dry well (Seni Gumbat) found during the quarter, the analyst said.
Other income of the company recorded a big jump as it increased from Rs639.7 million in October-December 2020 to Rs10.4 billion in the same period of 2021.
“Other income in 2QFY22 inflated 16 times year-on-year given exchange gain on currency devaluation tagged with higher interest income on cash and cash equivalents,” said the analyst.
Published in The Express Tribune, February 24th, 2022.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.