PakStox Outlook

OGDC: Oil & Gas Development Company Limited, Earnings Release: Q3 March 2023  EPS: Rs. 15.03. Cash Dividend: Rs. 1.8 per share Price (Rs.) 1 Month 6 Month 1 Year 86.17 5.50% 22.49% 1.90% Profit after tax of Rs. 64 billion is almost 50% of the PAT of Q3 last year, while profit before tax (PBT) is about 54% higher than the same quarter last year. Sales of Rs. 105.9 billion for the quarter have grown by 19%, while gross profit has grown by 16.6%. Gross margin was depressed due to higher operating expenses. Revenue was boosted due to the weakening rupee and higher oil prices. The real boost to the income came from 'other income' of Rs. 37.4 billion, which grew 4.5 times over the same period last year, due to higher investment income as interest rates rose. Other income also increased due to exchange gains coupled with share of profit in associates. The tax rate for the quarter was 35.2%, in line with the recent historic average. OGDC is trading at very low multiples, i.e., PE o...

Oil and Gas Development Company Limited Directors Report: March 31, 2023 Discovery : OGDCL's exploratory efforts to locate new reserves during the period under review yielded 3 oil and gas discoveries having an expected cumulative daily production potential of 3,007 barrels of oil and 2.7 MMcf of gas.  Production : OGDCL's production during the period under review contributed around 46%, 29% and 36% towards Country's total oil, natural gas and LPG production respectively (source: PPIS). Production : The average daily net saleable crude oil, gas and LPG production clocked in at 33,034 barrels, 765 MMcf and 732 tons in comparison to 36,173 barrels, 828 MMcf and 822 Tons in the comparative period respectively.  Revenue : Higher sales are primarily attributable to an increase in the realized price of crude oil averaging US$ 75.01/barrel (9M 2021-22: US$ 68.84/barrel). Other Income: In addition to the above, higher interest income on investment and bank deposits and exchange ga...