Oil & Gas Development Company Limited | Financial Results – Q2 Dec 2024
OGDC reported a profit of Rs. 9.6 per share for the quarter ending December 2024 and announced a cash dividend of Rs. 4.05 per share.
This brings OGDC's net income for the last four quarters stands at Rs. 39.1 per share, while the total cash dividend distributed during this period amounts to Rs. 13.1 per share.
The latest quarter’s earnings per share declined by 17.5% compared to the average EPS of the previous four quarters. The cumulative net income of the last four quarters is 16% lower than that of the preceding four quarters. However, over the last five quarters, OGDC has not recorded a loss in any quarter.
Higher 'other income' of Rs 20 billion billion compared to Rs 11 billion in the Q2-Dec 2023.
Revenue in the latest quarter declined by 11% compared to the average of the previous four quarters. Gross profit saw a decline of 9% over the same period, while net income decreased by 18% from the previous four-quarter average. The gross profit margin for the quarter stood at 61.3%, slightly higher than the 60.4% average of the last four quarters. The tax rate for the quarter was 43%, compared to the previous four-quarter average of 38.5%.
Excerpt from the Directors' Report.........."During the period under review, OGDCL's hydrocarbon production was impacted primarily due to forced production curtailment by SNGPL and UPL. Moreover, lower crude oil basket price averaging US$ 76.26/barrel against US$ 84.96/barrel in the corresponding period last year combined with unfavorable exchange rate variance impacted business financials. Against the backdrop of lower crude oil price environment, OGDCL remained resilient and focused on production optimization plan, whereby incremental cumulative daily production rate recorded was 3,290 barrels of crude oil, 40 MMcf of gas and 80 Tons of LPG. The Company's major product mix contributed around 48%, 28% and 34% towards Country's total oil, natural gas and LPG production respectively."
As of the week ending February 28, 2025, OGDC has underperformed the KSE100 index by 3% over the past three months. Over the past year, the stock has lagged behind the KSE100 by 5%.
OGDC has a medium weighting in the KSE100 index, while its weighting in KSE30 and KMI30 is classified as high.
The company holds a 20% stake in Mari Petroleum (PSX:MARI) and controls 42% of Pakistan’s oil reserves along with 36% of its gas reserves.
