First the golden jubilee and now delightful profits, FY12 has proven joyous for the largest E&P company in the country. In addition to largest portfolio of hydrocarbon reserves, OGDCs contribution towards total oil and gas production in the country as at June 30, FY12 stood at 27 percent and 58 percent respectively. During FY12, the top line of the company propelled by a healthy 27 percent on the back of higher realised prices of oil and gas, as well as production flows from Kunnar Pasahki Deep-Tando Allah Yar and Nashpa. The average realised prices of crude oil sold during the said period increased by 18 percent to $84.91 per barrel, while the gas prices augmented to Rs228.56 by 7 percent. Moreover, the top line growth also depicted 8-9 percent Rupee depreciation versus the green back. Besides, the bottom line of the company received a major 2 fold jump in the other income on account of rising return on investment and bank deposits and exchange gain. One factor that cannot be ignored is the absence of one-off charges that supported the bottom line significantly, unlike FY11 where the profits were marred by a downward revision in the revenues from Kunnar field. Meanwhile, the earnings for FY12 also received a boost from a fall in the exploration expenditure on account of no declaration of dry or abandoned wells. The announcement of a final payable dividend of Rs2.75 per share will bode well for the scrip which is already under spotlight for the possibility of an increase in the Qadirpur gas price to $3.2 per mmbtu. With a 75 percent share in Qadirpur field, OGDC will be the key beneficiary as production from the field is expected to step up in FY13. Additionally, the company is also sanguine about production flows from Nashpa amongst other prospects. With energy and power deficit at its all time high, the industry is laden with challenge like depleting reserves, stalled production and inter-corporate circular debt crisis. However, FY13 is anticipating increased exploration and accretion of production. Where the growth in FY12 was mainly driven by higher international crude prices, FY13 might bring on more oil and gas to the energy starved land.
================================================ Oil and Gas Development Company Limited ================================================ (Rs mn) FY12 FY11 chg Sales 197,839 155,631 27% Gross profit 138,306 102,728 35% Other income 9,660 3,304 192% Exploration & prospecting 4,048 6,622 -39% Profit for the period 96,906 63,527 53% EPS (Rs) 22.53 14.77 53% Gross margins 70% 66% Net margins 49% 41% ================================================
Source: KSE Notice
Comments
Comments are closed for this article.