Corporate results: OGDC’s profits climb 17% on higher sales

Company announces first interim dividend of Rs1.75 per share.


Zain Siddiqui October 23, 2012

KARACHI:


The Oil and Gas Development Company (OGDC) has announced its corporate earnings results for the first quarter of the current fiscal year (1QFY13). The company has declared a net profit of Rs25.656 billion for the period, which translates into Rs5.97 in earnings per share. The figure is 17.07% higher than the profit posted for the comparable period of the previous fiscal year.


OGDC has also announced a first interim dividend for financial year 2012-2013 of Rs1.75 per share.

For the first quarter of fiscal 2013, OGDC posted net sales of Rs53.795 billion, 20.38% higher than the net sales recorded in the first quarter of fiscal 2012, primarily on the back of higher oil and gas production. The company’s operating expenses were, however, 21.58% higher than last year – limiting the growth in gross profits.

Higher oil prices and depreciation in the Pakistani rupee augmented the company’s topline growth, said a result preview note released by AKD Securities.

Meanwhile, OGDC’s ‘other income’ was higher by 13.06% in 1QFY13 as compared to 1QFY12, in part due to exchange rate gains and interest income, while exploration and prospecting expenditures were higher by 119.7%. Exploration and prospecting expenditure should include a write off of Moolan North-1, and higher 2D and 3D seismic acquisitions, added the note from AKD Securities.

The Express Tribune had reported on October 12, 2012, that OGDC MD and CEO Masood Siddiqui has stated that the company will drill 37 new wells during the current fiscal year, against 17 wells drilled last year. Furthermore, two of its development projects – namely the KPD-TAY Development project and the Sinjhoro Development Project – will be ready to operate before the current fiscal year is through.

On September 6, 2012, the Oil and Gas Development Company (OGDC) had also announced the discovery of new hydrocarbon reserves in the Nashpa-3 well in the Karak District of Khyber-Pakhtunkhwa. The release said significant reserves of hydrocarbon had been confirmed at Nashpa-3 well after testing. The well is a joint venture between OGDC, the operator; Pakistan Petroleum Limited; and Government Holdings Private Limited. “This discovery will add to the hydrocarbon reserves of the company and joint venture partners and bring significant savings to the country in terms of less oil import,” the release had said.

Published in The Express Tribune, October 24th, 2012.

ngro is under bearish influence at the local bourse over expectations of resolution of gas supply to its Enven plant on the Sui Northern Gas Pipelines (SNGPL) network.

Earlier, the SNGPL said that it will be unable to provide further gas to fertiliser producers on its network due to low gas pressure. The SNGPL network includes Pakarab Fertilizer, Engro Enven, Agritech Limited and DHFL fertiliser plants.

DG Khan Cement was the volume leader with 7.17 million shares gaining Rs0.55 to finish at Rs51.77. It was followed by Jahangir Siddiqui and Company with six million shares losing Rs0.44 to close at Rs14.49 and Pace Pakistan with 5.45 million shares rising Rs0.25 to close at Rs3.52.

Foreign institutional investors were net sellers of Rs0.9 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, October 24th, 2012.

 

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