OGDC’s profit jumps 30% in 1HFY24

Oil and Gas Development Company Limited (OGDCL), the country’s largest exploration and production (E&P) company, reported a profit-after-tax (PAT) of Rs123.3 billion for the half-year ended December 31, 2023.

Earnings registered a growth of nearly 30% as compared to Rs95.01 billion in same period last year (SPLY), showed the E&P’s latest financial results provided to the Pakistan Stock Exchange (PSX) on Tuesday.

The board of directors met on February 27 to review the company’s financial and operational performance and also approved an interim cash dividend of Rs2.50 per share i.e. 25%. This is in addition to interim cash dividend already paid at Rs1.6 per share or 16%.

Earnings per share (EPS) were recorded at Rs28.67 in 1HFY2024 as compared to EPS of Rs22.09 in SPLY.

The growth comes on the back of increased sales and lower taxation paid during the period.

ODGCL’s revenue from contracts with customers rose to Rs235.38 billion compared to Rs203.24 billion in SPLY, which is up by nearly 16%.

PPL’s earnings jump 44%, clock in at Rs69.8bn in 1HFY24

The E&P’s gross profit registered a gain of 5%, clocking in at Rs146.19 billion in 1HFY24, compared to Rs139.72 billion in 1HFY23.

However, despite higher earnings, the company’s profit margin dropped to 62.1% in 1HFY24, as compared to 68.7% in same period previous year

During the period, the E&P’s exploration and prospecting expenses reduced by over 24%.

However, its cost of finance increased to Rs3.43 billion in the half-year ended December 31, 2023, as compared to Rs2.28 billion in the same period last year, a jump of over 50%.

The higher finance cost during the period could be attributed to the rise in interest rates during the period.

OGDCL’s share of profit in associates clocked in at Rs6.3 billion in 1HFY24, compared to Rs4.6 billion in SPLY, an increase of over 35%.

Despite a higher profit before tax, the E&P paid lower taxes to the tune of Rs35.02 billion in 1HFY24, as compared to Rs57.8 billion in SPLY, a decline of over 39%.

OGDCL was incorporated on 23 October 1997 under the Companies Ordinance, 1984. The company was established to undertake exploration and development of oil and gas resources, including production and sale of oil and gas and related activities formerly carried on by Oil and Gas Development Corporation, which was established in 1961.