KARACHI: The Oil and Gas Development Company Limited (OGDCL) reported a 30 percent jump in its half-year profit on Tuesday, boosted by higher net sales and a tax reversal in the second quarter.
The state-owned company, which is the country's largest oil and gas explorer, posted a net profit of Rs123.3 billion for the six months ended Dec. 31, up from Rs95 billion a year earlier. Earnings per share rose to Rs28.67 from Rs22.09 rupees, while net sales increased to Rs235.4 billion from Rs203.2 billion.
OGDCL also declared an interim cash dividend of Rs2.50 per share, in addition to the Rs1.60per share already paid. For the quarter ended Dec. 31, OGDCL's net profit surged to Rs74.3 billion from Rs41.7 billion in the same period of 2022, while earnings per share jumped to Rs17.27 from Rs9.70.
The company attributed the quarterly growth to a tax reversal of Rs2.1 billion, as well as higher revenue and lower exploration costs. Brokerage Insight Securties said the OGDCL's results beat market expectations, mainly due to the tax reversal and the depreciation of the rupee against the U.S. dollar by around 21 percent year on year, which boosted its revenue in local currency terms.
The OGDCL in a statement said the company paid Rs35.019 billion on account of taxation. "On the exploration and development side company recorded significant enhancement in seismic efforts and drilling activities." The Board of Directors appreciated the efforts of the management for taking effective steps for the implementation of the company’s aggressive exploration program, the statment added.
Millat Tractors profit jumps seven-fold
Millat Tractors Limited reported a more than seven-fold increase in its half-year net profit on Tuesday, boosted by higher sales and other income.
The company said its net profit for the six months ended Dec. 31 rose to Rs5.639 billion from Rs673.646 million a year earlier.
Earnings per share (EPS) jumped to Rs29.40 from Rs3.51. The company also declared an interim cash dividend of Rs25 per share. The revenue surged to Rs46.267 billion from Rs14.521 billion.
The company's cost of sales also rose to Rs34.290 billion from Rs11.715 billion, reflecting the higher volume of sales and input costs.
Millat Tractors said its other income increased to Rs549.179 million from Rs164.342 million. For the quarter ended Dec. 31, the company posted a net profit of Rs3.185 billion, up from Rs125.047 million in the same quarter of 2022. The EPS for the quarter was Rs16.61, compared with Rs0.65.