OGDCL Posts Huge 50 percent Gains in Profit for FY19 - Android - Pakistani apps and news

OGDCL Posts Huge 50 percent Gains in Profit for FY19 - Android

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OGDCL, the market leader in the Exploration & Production (E&P) sector of Pakistan, has announced its financial results for the… Read More

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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.

Statement of Profit or loss for the year ended June 30th, 2019 (Amounts in thousands except earnings per share)
	Jun-19	Jun-18	% Change
Sales – net	261,481,188	205,335,000	27.34%
Royalty	(29,335,927)	(21,970,947)	33.52%
Operating expenses	(63,455,844)	(60,213,460)	5.38%
Transportation charges	(1,627,854)	(1,670,850)	-2.57%
Gross profit	167,061,563	121,479,743	37.52%
Other income	32,288,249	16,008,118	101.70%
Exploration and prospecting expenditure	(12,499,324)	(16,190,496)	-22.80%
General and administration expenses	(4,129,249)	(4,087,862)	1.01%
Finance cost	(1,692,538)	(1,729,886)	-2.16%
Workers’ profit participation fund	(9,294,706)	(5,927,724)	56.80%
Share of profit in associate – net of taxation	4,865,418	3,074,868	58.23%
Profit before taxation	176,599,413	112,626,761	56.80%
Taxation	(58,213,625)	(33,890,466)	71.77%
Profit for the year	118,385,788	78,736,295	50.36%
Basic and diluted earnings per share – Rupees	27.53	18.31	50.35%