Corporate results: OGDC’s earnings fall 29% in first half
Oil and gas giant posts net profit of Rs47.8b.
Earnings per share of the company stood at Rs11.12 in the first half against Rs15.63 in the corresponding period a year ago. STOCK IMAGE
KARACHI:
Oil and Gas Development Company (OGDC), Pakistan’s largest exploration and production company with market capitalisation of $9.4 billion, posted after-tax profit of Rs47.828 billion in the half year ended December 2014, down around 29% compared to Rs67.226 billion in the same period a year earlier.
Earnings per share of the company stood at Rs11.12 in the first half against Rs15.63 in the corresponding period a year ago.
With the results, it announced a second interim cash dividend of Rs2 per share. This was in addition to the already-paid interim dividend of Rs2.50 per share.
In a report, Topline Securities said the decline in earnings was primarily due to the plunge of over 50% in global oil prices since June last year.
OGDC’s net sales dropped 6% to Rs119 billion in July-December 2014 against Rs126 billion in the same period of previous year.
In the second quarter (October-December) alone, net sales fell 16% to Rs54 billion compared to Rs64 billion in the second quarter of financial year 2013-14.
OGDC posted EPS of Rs4.54 in the second quarter, down 42% from Rs7.82 in the corresponding three months a year ago. In the first half, sales volumes remained flat as oil and gas production improved only 1.5% and 0.4% respectively compared to the previous year, Topline said.
Published in The Express Tribune, February 5th, 2015.
Oil and Gas Development Company (OGDC), Pakistan’s largest exploration and production company with market capitalisation of $9.4 billion, posted after-tax profit of Rs47.828 billion in the half year ended December 2014, down around 29% compared to Rs67.226 billion in the same period a year earlier.
Earnings per share of the company stood at Rs11.12 in the first half against Rs15.63 in the corresponding period a year ago.
With the results, it announced a second interim cash dividend of Rs2 per share. This was in addition to the already-paid interim dividend of Rs2.50 per share.
In a report, Topline Securities said the decline in earnings was primarily due to the plunge of over 50% in global oil prices since June last year.
OGDC’s net sales dropped 6% to Rs119 billion in July-December 2014 against Rs126 billion in the same period of previous year.
In the second quarter (October-December) alone, net sales fell 16% to Rs54 billion compared to Rs64 billion in the second quarter of financial year 2013-14.
OGDC posted EPS of Rs4.54 in the second quarter, down 42% from Rs7.82 in the corresponding three months a year ago. In the first half, sales volumes remained flat as oil and gas production improved only 1.5% and 0.4% respectively compared to the previous year, Topline said.
Operating cost rose 29% to Rs26 billion versus Rs20 billion in the previous year. Net margins declined to 40.3% in July-December 2014 compared to 53.3% in July-December 2013.
Published in The Express Tribune, February 5th, 2015.