Whenever the currency depreciates, there are some sectors that get a lift in their earnings. One such sector is the oil and gas exploration and production in FY19 where massive currency depreciation has resulted in significant increase in the revenues of the E&Ps sector.

The E&P giant, Oil and Gas Development Company Limited (PSX: OGDCL) has also seen its revenues increase by 27 percent year-on-year on the back of currency depreciation of over 22 percent in FY19. At the same time, higher crude oil prices also reflect positively in the company's top line. The average realised prices of crude oil stood at $58.74 per barrel, up by 7.66 percent, year-on-year; and the average realised prices of natural gas stood at Rs336.62 per mcf – up by 30 percent year-on-year. On the production side however, crude oil and natural gas average daily volumetric flows in FY19 both stood up by only 1 percent, year-on-year.

OGDCL also witnessed a significant increase in other income, which came primarily from higher interest income on interest bearing instruments; while on the expense side, the exploration and prospecting expenditure remained subdued even after the declaration of Kekra-1 well as dry. The E&P company's overall earnings hence grew by 50 percent in FY19.

The OGDCL's performance for FY19 was refreshing for the investors who have been seeing quite some turbulence; not only has the stock market been volatile, the busting of prospects in offshore drilling (Kekra-1), weakening oil price outlook in general despite temporary ups and downs, and the government's plan to offload the 7 percent share in the company are all key factors that determine the stock's near term prospects