Oil and Gas Development Company’s (OGDC), Pakistan’s largest E&P company, saw its profit jump by 50% to Rs64.627 billion in the third quarter of the fiscal year that ended March 31, 2023, due to a spike in oil prices and rupee depreciation.

The company registered a profit of Rs43.16 billion in the same period last year (SPLY), according to the profit or loss accounts filed with the Pakistan Stock Exchange (PSX) on Thursday.

Resultantly, earnings per share (EPS) increased to Rs15.03 in the period under review compared to Rs10.04 in SPLY.

The company’s board of directors recommended an interim cash dividend of Rs1.8 per share i.e. 18%. This is in addition to the interim dividends already paid at Rs4 per share i.e. 40%.

The company’s net sales surged by 19% to Rs105.91 billion during the third quarter of the current fiscal year, compared to Rs89.10 billion recorded in the prior year.

OGDCL announces financial results

“The ascend in revenue is attributable to the weakening of the Pak Rupee against the greenback by 32% YoY,” said Muhammad Iqbal Jawaid, an analyst at Arif Habib Limited, in a post-result commentary.

“However, oil and gas production depicted a fall of 5% and 13% YoY, respectively in 3QFY23, while oil prices declined by 18% YoY.”

Oil and gas exploration cost increased 52% to Rs4.246 billion in 3QFY23, compared to Rs2.8 billion in SPLY “given higher cost of dry well (Bhambra-02) during the quarter tagged with higher seismic activities.”

The company’s other income showed an exponential growth of 348% YoY hitting Rs37.45 billion in 3QFY23, compared to Rs8.351 billion in 3QFY22, “owed to massive exchange gain of Rs 23.6 billion during the quarter coupled with higher interest income on cash and cash equivalents,” he said.

The company booked effective taxation at 35% in 3QFY23 as compared to 33% in 3QFY22.