OGDCL reports Rs171b profit for Jul-Mar FY24

Company makes significant progress in seismic, drilling efforts

ISLAMABAD:

Oil and Gas Development Company Limited (OGDCL) has announced that it earned an after-tax profit of Rs171.10 billion with earnings per share of Rs39.78 in the first nine months of the current financial year.

The board of directors of the company, in its meeting held on April 29, 2024, unveiled the financial results for the nine-month period ended March 31, 2024.

Net sales of the oil and gas explorer came in at Rs348.16 billion during July-March 2023-24. The board declared an interim cash dividend of Rs2 per share ie, 20% for the quarter ended March 31, 2024. It was in addition to the interim dividend of Rs4.1 per share ie, 41% already paid to shareholders. The dividend will be paid to the shareholders whose names appear in the register of members on May 9, 2024.

During the nine-month period, the company paid Rs68.497 billion in taxes while on the exploration and development side, it made significant progress in seismic efforts and drilling activities.

The board appreciated the management for taking effective steps for the implementation of an aggressive exploration programme.

OGDCL’s average realised prices for crude oil, gas and liquefied petroleum gas (LPG) were calculated at $68.72 per barrel (9MFY23: $75.01 per barrel), Rs713.15 per million cubic feet (9MFY23: Rs588.96 per million cubic feet) and Rs163,309 per ton (9MFY23: Rs149,624 per ton) respectively. The average rupee-dollar exchange rate was Rs284.88/$ (9MFY23: Rs236.25/$) during the period under review.

So far in the current financial year, OGDCL has acquired 810 line km of 2D (9MFY23: 1,239 line km) and 577 square km of 3D (9MFY23: 482 square km) seismic data.

The 3D seismic activities were affected by the unavailability of imported ground electronics goods owing to LCs opening issues and delay in the commencement of Tirah/Orakzai project due to security challenges and heavy rainfall.

The company drilled eight wells including three exploratory wells, and five development wells during the nine-month period.

Commenting on the results, OGDCL MD and CEO Ahmed Hayat Lak stated that despite rising geopolitical tensions coupled with the extension in OPEC’s production curbs, the company registered growth of 13% and 7% in its top and bottom line financials respectively.

Published in The Express Tribune, April 30^th, 2024.

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