Profits of the E&P sector and the oil marketing sector have started to recuperate; the latest quarter has seen some significant rises in earnings primarily due to the oil price recovery. Oil and Gas Development Company Limited (PSX: OGDCL) has announced around nine percent year-on-year rise in its bottomline for 9MFY17, while the earnings for 3QFY17 were up by almost 90 percent, year-on-year.
Fortunately, this time around, the boost to the earnings came from the rising topline, which had become rare in previous quarters due to falling crude oil prices. Attributable mainly to increase in crude oil, LPG and sulphur production coupled with recovery in international oil prices, sales revenue for OGDCL increased by 25 percent in 3QFY17, and by three percent in 9MFY17.
Average net realized price of crude oil sold was during the period under review was $43.76 per barrel as against $38.83 per barrel during corresponding period last year. However, average net realized price for natural gas sold was Rs233.96/Mcf as against Rs256.23/Mcf during corresponding period last year.
Where the firm has seen stagnation in the production in flows in the last five years, the production is likely to get a boost with completion of the ongoing projects.
The state-owned oil and gas exploration and production has achieved the highest ever gross crude oil production of 50,354 barrels a day and over one billion cubic feet per day (BCFD) of gas.
The CEO's statement highlights that OGDCL intensified exploratory endeavours to locate new hydrocarbon reserves during the nine-month period, culminated in 4 new oil and gas discoveries having cumulative daily production potential of 37 MMcf of gas and 300 barrels of oil.
While OGDCL has been aggressively continuing with its drilling activity, the company witnessed a fall in exploration and production expenditure in the absence of any dry wells announced.
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