OGDC fields hit the hardest among peers

OGDC fields have been hit the hardest following the floods since its field portfolio spreads across the country.


Express September 04, 2010

The Oil and Gas Development Company’s (OGDC) fields have been hit the hardest following the floods since its field portfolio spreads across the country, according to IGI Securities.

Major oil producing fields Chanda, Mela, Nashpa, Pashakhi of OGDC, the country’s largest explorer, produced well below their original levels during the last three weeks.

Nashpa and Mela are now back to their previous levels while Chanda and Pasakhji are still producing 28 per cent and 19 per cent respectively below their June levels, highlighted IGI Securities analyst Umair Siddique on Friday.

POL and PPL’s earnings growth at 26 and 31 per cent respectively during fiscal year 2011 will comfortably topple OGDC’s 8 per cent, predicted Siddique.

PPL and POL  relatively better

Pakistan Petroleum Limited (PPL) numbers are also expected to remain subdued as the company has stakes in Mela, Nashpa and Kandhkot, wrote Siddique in the company research report.

Pakistan Oil Fields Limited (POL) is the least affected as volumes from its affected field Bela contributes minimally to the company’s net production, said Siddique.

Timely completion of a number of projects – Mela, Mamikhel, Qadirpur and Maramzai, scheduled to come online during October to March – can lift production volumes of the sector significantly.

The payouts and dividend yields of the exploration and production sector which had been earlier impacted from the circular debt are now expected to remain under more pressure during fiscal year 2011, informed Siddique.

Circular debt issue remains highly unlikely to be resolved this fiscal year due to the devastating floods and the paucity of funds faced by the government.

Published in The Express Tribune, September 4th, 2010.

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