OGDC Half year FY12 results – brief review – Alfalah Securities Limited

Karachi: OGDC has announced its 1HFY12 results wherein it reported profit after tax of PKR 41.57 billion (EPS: PKR 9.67) as compared to PKR 31.6 billion (EPS: PKR 7.35) in the same period last year rising by 31.56% YoY.

According to Alfalah Securities Limited, the company also announced second interim dividend of PKR 1.5 per share taking the cumulative DPS to PKR 3.0. OGDC reported EPS of PKR 4.57 lower than Alfalah Securities Limited’s earnings expectation of PKR 4.95 per share in the 2Q FY12. The earnings dropped lower than Alfalah Securities Limited’s expectations due to higher than expected exploration cost and operating expenses. Alfalah Securities Limited expects it to post higher earnings in the second half on the back of higher oil and gas prices and higher production expectations. Alfalah Securities Limited recommends a BUY on OGDC with target price of PKR 190.50 and it is trading at a FY12E P/E of 7.4

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