KARACHI: Oil and Gas Development Company, the country’s largest oil and gas explorer, profit surged 52% to Rs96.9 billion on higher oil and gas prices.
Revenue expansion with a blend of higher prices along with higher other income does the trick for the oil and gas explorer, said AKD Research Director Research and Business Development Naveed Vakil.
Average net realised price of crude oil sold was 18% higher at $ 84.91 per barrel while gas price was up 7% to Rs228.56 per million cubic feet.
Net crude production remained flat at 37,615 barrels per day while net gas production rose 8% to 1,091 million cubic feet per day.
The two combined rose overall revenue growth by 27% to Rs197.84 billion compared with Rs155.63 billion in the corresponding period last year.
Also aiding revenue growth in will be the absence of a one-time downward revision of Rs15 billion in Kunnar crude oil pricing.
The result was accompanied by a final dividend of Rs2.75 per share, taking the full year dividend to Rs7.25 per share.
Other income almost tripled to Rs9.7 billion in the period under review from the preceding year’s Rs3.3 billion on the back of foreign exchange gains and higher interest income on cash balances.
“OGDC again delivered strong financial results and stable operating performance,” said CEO Masood Siddiqui in a statement while commenting on the earnings
“The explorer will not stop here, but will continue to progress aggressively and improve results,” he added.
Operating profit margin and net profit margin were 62% and 49% respectively.
The explorer drilled 17 new wells during the year ended 30 June 2012. The exploratory efforts yielded two new significant oil and gas discoveries namely Nashpa-2 (Nashpa Exploration Licence) and Zin-X-1 (Zin E.L).
Published in The Express Tribune, August 10th, 2012.