OGDC net profit falls 15 percent in FY20

September 29, 2020

KARACHI: The Oil and Gas Development Company Limited net profit fell 15 percent to Rs100.081 billion for the year ended June 30, 2020, a bourse filing said on Thursday.The earnings per share ...

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KARACHI: The Oil and Gas Development Company Limited (OGDCL) net profit fell 15 percent to Rs100.081 billion for the year ended June 30, 2020, a bourse filing said on Thursday.

The earnings per share (EPS) remained at Rs23.27 The company earned Rs118.385 billion with EPS of Rs27.53 last year. The OGDCL said its Board of Directors in a meeting held on Monday announced final cash dividend of 25 percent or Rs2.50 per share. This is in addition to Rs 4.25 per share Interim dividends already paid.

“The cash dividend will be paid to the shareholders whose names will appear in the Register of Members on Wednesday, October 21, 2020. The Share Transfer Books (STB) of the Company will be closed from Thursday, October 22, 2020 to Wednesday, October 28, 2020 (both days inclusive),” the company said in a statement.

The company’s net sales revenue clocked at Rs244.856 billion with profit after tax at Rs100.081 billion. During the period under review, the company also paid Rs42.983 billion and Rs27.626 billion on account of taxes and royalty respectively.

On the exploration and development side, the OGDCL made significant progress in seismic and drilling activities. “Twenty five wells were spud in comparison to 16 last year,” it added. “Exploratory efforts resulted in five discoveries of oil & gas reserves and the Board of directors appreciated the efforts of the management for ensuring production enhancement and significant exploratory work during the period. “

The statement said production was optimized through injection of 14 wells in the production gathering system. Deployment of Electrical Submersible Pumps (ESP) also contributed to production enhancement and the company will continue to use latest technology for better efficiency,” it added.

The newly injected development wells would add to the hydrocarbon reserves base of OGDCL and the country besides bringing significant savings to the exchequer through import substitution. The increase in oil & gas production would also help in mitigating ever growing demand of domestic consumers and industry.

Brokerage Topline Securities in its report said the OGDCL recorded net sales of Rs46 billion in Q4FY20, down 29 percent QoQ due to fall in hydrocarbon production by 13-16 percent QoQ in addition to the decline in average oil prices.

“Operating expenses during the quarter increased by 10 percent YoY and 28 percent QoQ despite decline in hydrocarbon production,” the brokerage said.

It added that exploration cost of OGDCL increased by 53 percent QoQ, as the company recorded two dry wells during Q4FY20 (versus one in Q3FY20). Other Income declined by 43 percent QoQ due to absence of heavy exchange gains.



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