Oil and Gas Development Company Limited (OGDC) on April 27, 2023 announced its financial results for 9MFY23, reporting a profit after tax of PKR 159.64 billion (EPS: PKR 37.12) compared to PKR 112.04 billion (EPS: PKR 26.05) in 9MFY22, reflecting an increase of 42% YoY.
The company’s earnings in 3QFY23 amounted to PKR 64.63 billion (EPS: PKR 15.03), a rise of 50% YoY. OGDC also announced a cash dividend of PKR 1.80/share in 3QFY23 (PKR 5.80/share in 9MFY23), according to analysts at Arif Habib Limited.
During 9MFY23, OGDC’s topline grew by 29% YoY to reach PKR 309,148 million, owing to higher oil prices (up by 10% YoY) and the Pakistani Rupee’s depreciation against the USD by 27% YoY.
In 3QFY23, net sales increased by 19% YoY, reaching PKR 105,913 million, primarily due to a 32% YoY depreciation of the Pak Rupee against the US Dollar. However, oil and gas production showed a decline of 5% and 13% YoY, respectively, in 3QFY23, while oil prices dropped by 18% YoY.
The company’s exploration cost in 9MFY23 amounted to PKR 10,895 million, up by 12% YoY, primarily due to the increase in dry well expenses. Meanwhile, exploration costs in 3QFY23 reached PKR 4,246 million, up by 52% YoY, owing to higher costs of dry well (Bhambra-02) during the quarter along with higher seismic activities.
Other income in 9MFY23 exhibited a significant jump of 120% YoY, amounting to PKR 65,184 million. In 3QFY23, the company’s other income rose by 4.5x YoY, reaching PKR 37,446 million, owing to an exchange gain of approximately PKR 23.6 billion during the quarter, coupled with higher interest income on cash and cash equivalents.
The company recorded an effective taxation rate of 35% in 3QFY23 compared to 33% in 3QFY22.
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