KARACHI: Oil and Gas Development Company Limited (OGDCL) on Monday announce financial results and declared over 15 percent decline in annual profit mainly because of lower sales during the year.
In its financial results submitted to Pakistan Stock Exchange (PSX), the company declared Rs100 billion after tax profit for the year ended June 30, 2020 as compared with Rs118.38 billion in the preceding financial year, showing a decline of 15.52 percent.
The earnings per share also fell to Rs23.27 for the year 2020 as against EPS of 27.53 a year ago.
The company declared net sales of Rs244.85 billion for the year ended June 30, 2020 as compared with Rs261.48 billion a year ago.
According to Topline Securities, the company in FY20 recorded average net crude oil production of 36,073 bpd, average net gas production of 893 MMcfd, average net LPG production of 739 MTPD and average net Sulphur production of 54 MTPD.
Twenty-five wells were spud, comprising of fifteen exploratory/appraisal, five development and five re-entry/side track wells in FY20.
Average net realized price of oil was US$46.76/barrel during FY20 as against US$58.74/barrel last year.
Net realized price for natural gas was Rs393.32 per mmcf as against Rs337.66 per mmcf last year.
The company has recognized 8 dry wells in FY20 compared to 2 wells in FY19.
The company expects FY21 capex target at Rs55bn, targeting 45 wells herein exploratory wells are 31.
Nashpa production stats are likely to sustain over 2 years at 15-16k bopd.
The company is also evaluating ENI assets in Pakistan. To recall, ENI is planning to sell its assets in Pakistan.
The company is all set to bid for new blocks which are expected to be auction by this year end.
OGDC has received Rs6.5bn from Uch Power Private Limited, from the disbursements under the Pakistan Energy Sukuk-II.
In addition, the Company has also received some payments from SSGC and SNGP with average collection standing at around 70 percent.
Operating expenses of the company remained inflated in 4QFY20 due to year-end factors like some non-cash expenses and pension costs re-evaluation.
The effective tax rate clocked in at 30 percent in FY20 vs. 33 percent in FY19 due to absence of Super Tax.