Corporate results: OGDC makes Rs22 billion in 92 days

KARACHI:

Oil and Gas Development Company - the country’s largest oil and gas explorer - profits jumped 31% to Rs21.9 billion during July to September 2011 on higher revenues and decline in exploration expenditure.

The result beat analyst forecast by at least 16% as they expected it, on average, to stand around Rs18.8 billion.

The board of directors also announced an interim payout of Rs1.5 per ordinary Rs10 share.

Net sales surged 13% to Rs44.7 billion on the back of higher price of oil and uptick in gas production, said Global Securities analyst Syed Saquib Ali.

The company’s crude oil production remained stagnant at 36,092 barrels per day on a yearly basis while gas production increased by 7.8% to 1,023 million cubic feet per day in the first quarter of 2011 compared with the same period last year.

The company is fully focused on achieving sustainable growth through a well thought out exploration programme, said OGDC CEO Basharat Mirza in a post-result statement.

Other income that tripled to Rs2.3 billion due to strong cash balances also supported the bottom-line, added Ali.

The company holds the largest portfolio of the recoverable hydrocarbon reserves in the country, at 37% of gas and 48% of oil, respectively, as at December 31, 2010.

Exploration expenditure fell sharply by 74% as 4 wells were expensed out in the same period last year.  Operating expenses increased by 14% to Rs7.2 billion in the period under review.

NBP profits crawl up

National Bank of Pakistan’s unconsolidated profits rose marginally to Rs11.40 billion in the first nine months of 2011 against Rs11.36 billion in the same period last year.

The lower than market expectation resulted in the stock price falling 3.6% to close at Rs41.14 during trade at the Karachi Stock Exchange on Thursday.

While loan provisions remained below expectations, third quarter disappointed due to lower than expected gross interest income, lower than expected fee income, which traditionally tends to be stable and higher administrative expenses, said AKD Securities analyst Raza Jafri.

Break-up reveals that gross interest income during July to September crawled up to Rs22.6 billion compared with Rs22.2 billion in the same period last year.

Net interest income of the bank register a growth of 5% to Rs33.2 billion, primarily driven by higher yields and earning assets in the period.

Non-interest income rose marginally by 8% to Rs13.2 billionn driven by fee and other income.

Furthermore, administrative expenses also put some pressaure on the bottom-line as it rose by 13% to Rs19.5 billion in the period under review compared with Rs22 billion in the same period last year.

Published in The Express Tribune, October 28^th, 2011.