Oil and Gas Development Company (OGDC) has reported a record high net profit of Rs224.62 billion, up by 68% year-on-year, on the back of robust sales, other income, and share in profit from associates for the year ended June 30, 2023.
The oil and gas exploration company earned Rs133.78 billion in the previous year, according to the firm’s profit or loss account sent to the Pakistan Stock Exchange (PSX) on Thursday.
Earnings per share came in at Rs52.23 in FY23 compared to Rs31.11 in the prior year.
OGDC’s board recommended a final cash dividend of Rs2.75 per share for the year. It was in addition to the already-paid interim dividend of Rs5.80 per share.
Arif Habib Limited analyst Muhammad Iqbal Jawaid, in post-result comments, said net sales of the company surged to Rs413.59 billion in FY23, up by 23% year-on-year, amid a surge in average net realized prices of gas and 28% rupee devaluation.
OGDC’s oil and gas production, however, slumped by 8% and 7.4% year-on-year, respectively, settling at 32,478 barrels of oil per day and 764 million cubic feet of gas per day. The production decreased owing to the natural decline in output at multiple fields. Furthermore, torrential rains/floods forced the curtailment of production at a couple of fields.
Lower intake by Uch Power Limited amid a rupture incident further kept OGDC’s production in check, he said.
The company injected seven operated wells during the year to mitigate the decline in oil and gas production. It also conducted “96 work-over jobs” at mature fields to arrest the natural decline.
OGDC’s exploration cost increased by 22% to Rs14.23 billion in FY23 on account of two dry wells found during the period. During the year under review, the company spud five exploratory, four development, and one re-entry well. Its exploratory efforts yielded three new oil and gas discoveries.
In FY24, the company plans to spud nine exploratory and nine development wells, the analyst said after attending a briefing arranged by the company.
The company booked exchange gains of Rs38 billion on the foreign currency account during FY23. In Q4 alone, its other income augmented 5.3 times, which was due to one-off gains on the modification of finance leases of Uch Power, he said.