By: Azee Securities Private Limited
OGDC: Lower crude prices dent earnings Oil and Gas Development Company (OGDC) recently announce the result where company earn a profit after taxation (PAT) of Rs 47.82 billion (EPS: Rs 11.12) in 1HFY15 compared to Rs 67.22 billion (EPS: Rs 15.63) in 1HFY14, depicting decline of 29%. This is primarily due to decrease in oil prices, reduction in other income owing to lower exchange gains and sharp rise in exploration expenditure.
2QFY15: Profitability down 31% QoQ: In 2QFY15 alone, QoQ earnings drop by 31% as company posted PAT of Rs 19.51 billion (EPS: Rs 4.54) in 2QFY15 as against Rs 28.31 billion (EPS: Rs 6.58) in 1QFY15. This was due to reduction in average crude oil prices by 21% QoQ, declining in gas production and drop in other income. Along with the corporate results company also announced a second interim cash dividend of Rs 2/share totaling to Rs 4.5/share for FY15.
Net sales down by 6%: Net sales of the company went down by 6% to Rs 118.64 billion versus Rs 126.17 billion in 1HFY14 due to lower oil realized prices despite better oil & gas production. The crude oil production during 1HFY15 reached at 41,271 bpd from 40,215 bpd in 1HFY14, depicting rise by 3% due to increase in production from Nashpa, Rajian & Lashari fields and commencement of production from Nim and Jarwar fields. The gas production too remained higher as it surge by 3% during the 1HFY15. Gas production stood at 1,173 mmcfd from 1,136 mmcfd in 1HFY14. The rise in production was contributed from Uch, Nashpa and Maru-Reti fields in conjunction with beginning of production from Nim, Dhachrapur and Gopang fields. Other income drop by 16% to Rs 10.22 billion against Rs 12.12 billion in 1HFY15 due to lower exchange gains. Company’s made 3 new oil and gas discoveries namely Soghri-1 & Jand-1 in district Attock, Punjab province and Jarwar-1 in district Tando Allah Yar, Sindh province.