Oil and Gas Development Company’s (OGDC) net profit increased 46% to Rs133.78 billion in the fiscal year ended June 30, 2022, owing to a spike in global oil prices and currency depreciation, while volumetric production dropped.
AHL Brief Note: 23-Sep-22
— Arif Habib Limited (@ArifHabibLtd) September 23, 2022
According to profit or loss reports issued to the Pakistan Stock Exchange (PSX) on Friday, the company made a profit of Rs91.53 billion in the previous fiscal year 2020-21.
As a result, earnings per share grew to Rs31.11 in the fiscal year under review, up from Rs21.28 the previous year.
The board of directors of the company suggested a final cash dividend of Rs2.5 per share, additional to the interim dividends already paid at Rs4.75 per share this year. The increased entitlement will be paid to shareholders whose names appear in the members’ register on October 7, 2022.
With a 4.15 million share turnover, OGDC’s share price fell 0.58% (or Rs0.43) to settle at Rs73.33.
The company’s net sales increased by 40% to Rs335.46 billion in the fiscal year under review, up from Rs239.10 billion the previous year.
The sales increased “on account of a surge in oil prices by 71% year-on-year given a resumption of oil demand internationally and Pakistani rupee depreciation against the US dollar by 10% year-on-year,” said Muhammad Iqbal Jawaid, an Analyst at Arif Habib Limited, in a post-result commentary.
“However, oil and gas production dipped by 4% and 6% year-on-year, respectively.”
Oil and gas exploration cost fell 10% to Rs15.58 billion given that five wells were found dry during FY22 compared to eight wells found dry in FY21.
Other income spiked three-time to Rs46.57 billion in FY22, compared to Rs13.97 billion in FY21, “due to recognition of exchange gains,” he said.
In the fourth quarter (April-June FY22) alone, OGDC’s net profit dropped 14% to Rs21.74 billion (earning per share of Rs5.05) “due to the imposition of super tax during the quarter.”