KARACHI: Net income of Oil and Gas Development Company (OGDC), the country’s biggest energy firm, rose 6.4 percent to Rs63.803 billion for the year ended June 30 as exploration cost decreased and crude output increased, analysts said on Friday.
OGDC’s annual profit translated into earnings per share (EPS) of Rs14.83. The oil and gas exploration firm recorded a profit of Rs59.97 billion with EPS of Rs13.94 for the preceding fiscal year of 2015/16.
The company also announced a final cash dividend of Rs2/share, which is in addition to dividend of Rs4/share already paid to the shareholders. “On the exploration and development side, the company made a significant progress in seismic and drilling activities,” OGDC said in a statement.
Analyst Sharoon Ahmad at Elixir Securities said the company’s earnings marginally beat the market’s expectation as it registered higher than estimated topline and lower than expected exploration cost.
Annual exploration cost fell nine percent to Rs13.27 billion due to lower seismic activities. In FY2017, OGDC’s revenue soared 5.5 percent from Rs162.866 billion in FY2016.
Analyst Waqas Ahmed at Taurus Securities Limited said the company’s sales surged as crude oil production improved eight percent. Ahmad of Elixir Securities said higher effective tax, however, partially offset the revenue.
OGDC paid Rs25.334 billion on the account of taxes during the last fiscal year. In FY2017, the company’s other income stood at Rs16.02 billion compared with Rs14.7 billion in FY2016.
State-owned OGDC planned to expand its exploration and production activities within the country as well as across the international oil and gas fields.
Ahmed of Taurus Securities said the company’s profit marginally fell six percent year-on-year to Rs16.2 billion during the fourth quarter of FY2017, translating into EPS of Rs3.77. The profit amounted to Rs16.47 billion with EPS of Rs3.83 for the same period last year. He said revenue, however, grew 13 percent year-on-year to Rs45.2 billion in 4Q2017 on account of improved production of oil and gas and higher Arab light prices.
Later this week, OGDC signed a strategic cooperation with Hungarian energy group MOL to carry forward reconnaissance drives in Pakistan, Middle East, African continent and commonwealth of independent states.
In July, the company unveiled its plan to go for a raft of acquisitions abroad after it received a sum of Rs53.4 billion against maturity of Pakistan investment bonds, which the company subscribed in July 2012 to settle receivables originating from circular debt.
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