OGDCL Posts Huge 50% Gains in Profit for FY19

OGDCL, the market leader in the Exploration & Production (E&P) sector of Pakistan, has announced its financial results for the year ended June 30, 2019.

OGDCL continues to deliver robust financial results, posting a growth of 50.36% in profits. The company has booked a profit of Rs. 118.38 billion as compared to a profit of Rs. 78.73 billion in the same period last year. Its sales revenue showed a growth of 27.35% to Rs. 261.48 billion as compared with Rs. 205 billion in the corresponding period.

The company's earnings have increased significantly on the back of Rupee's devaluation against the US dollar (higher exchange gains), increase in interest income and higher crude oil prices during the whole year.

On the expense side, the operating expenses were posted at Rs. 63.45 billion as compared to Rs. 60.21 billion in the same period last year. However, Exploration and prospecting expenditure went down during the year by 22.80% to Rs. 12.49 billion from Rs.16.19 billion in the corresponding period.

Furthermore, a decline in exploration and prospecting expenditures also contributed to improved financial performance. However, the domestic E&P sector underwent wild swings this year, with developments surrounding the Kekra-1 offshore well.

While other income grew significantly by 101.70% to Rs. 32.28 billion as compared with Rs. 16.00 billion in the same period last year, the increase in other income was a result of exchange gains due to currency depreciation and interest income due to higher interest rate environment.

Earnings per share of the company were increased to Rs. 27.53 from Rs. 18.31 in the corresponding period.

During the period under review, the company paid Rs. 58.21 billion on account of taxes. On the exploration and development side, the company made significant progress in seismic and drilling activities. The company has also announced an interim dividend of Rs. 2.50/share. This is in addition to interim dividends already paid at Rs. 8.5 per share i.e. 85%.

The government is also considering to divest its stake in the Oil and Gas Development Company (OGDC) which might be up for grabs globally.

OGDCL's shares at the bourse was closed at Rs. 124.59, down by Rs. 1.56 or 1.24% with a turnover of 4,645,000 shares on Wednesday.

Source:Pro Pakistani