By: Azee Securities Private Limited
The board meetings for the 9MFY15 financial results of Lucky Cement limited (LUCK) and Oil and Gas Development Company Limited (OGDC) are scheduled to be held on April 23, 2015. Below we are presenting our estimates.
OGDC to post 25% decline in earnings: The bottom line of OGDC is expected to decrease by 25% to Rs 67.92 billion (EPS: Rs 15.79) in 9MFY15 compared to Rs 90.93 billion (EPS: Rs 21.14) in 9MFY14. This is primarily expected due to drastic drop in decline prices and lower wellhead gas prices. Net sales likely to decrease by 11% to Rs 168.87 billion as compared to Rs 190.36 billion in 9MFY14 due to lower oil & gas realized prices, despite better production of oil & gas which hike by 1% and 2% respectively during 9MFY15. Gross profit likely to decrease by 18% to Rs 109.20 billion compared to Rs 133.30 billion in 9MFY14. We expect OGDC to announce dividend of Rs 2/ share in 3QFY15, taking cumulative DPS of 6.50 in 9MFY15.
DGKC to show healthy profitability growth: We expect company to post decent growth of 31% YoY to profit after tax of Rs 5.16 billion (EPS: Rs 11.77) in 9MFY15 compared to Rs 3.94 billion (EPS: Rs 9.00) during the same period last year. This is expected due to lower effective taxation, surge in cement prices, higher other income and lower financing cost. Net sales likely to drop by 2% to Rs 19.23 billion in 9MFY15 versus Rs 19.60 billion in 9MFY14 due to lower volumes of 4% to 2.84 in 9MFY15 against 2.94 million tons in 9MFY14 owing to lower export dispatches by 34% YoY. Gross profit to marginally decline by 0.2% to Rs 6.36 billion versus Rs 6.37 billion in 9MFY14 due to lower volumetric sales and surge in fuel charges.