OGDC Posts Whopping Profit of Rs. 64.6 Billion in Q3

Oil & Gas Development Company Limited (OGDC) has posted a quarterly profit of Rs. 64.627 billion for the quarter ended March 31, 2023 (3QFY23). According to the company’s financial results, the profit after tax (PAT) in 3QFY23 is 50 higher than PAT of Rs. 43.161 billion reported in the same quarter of the previous fiscal year. The company’s earnings per share (EPS) came in at Rs. 15.03 in 3QFY23 compared to EPS of Rs. 10.04 reported in 3QFY22. The company posted a profit after tax of Rs. 159.639 billion (EPS: Rs. 37.12) in 9MFY23 compared to Rs. 112 billion (EPS: Rs. 26.05) in 9MFY22, depicting a jump of 42 percent year-on-year (YoY). Alongside the result, the company announced a cash dividend of Rs. 1.80 per share in 3QFY23 (Rs. 5.80  per share in 9MFY23). The topline in 9MFY23 witnessed a growth of 29 percent YoY, arriving at Rs. 309.148 billion given higher oil prices and the depreciation of the Pakistani rupee against the US dollar. In 3QFY23, net sales increased by 19 percent YoY, clocking in at Rs. 105.913 billion. The increase in revenue is attributable to the weakening of the local currency against the greenback. The exploration cost settled at Rs. 10.895 billion in 9MFY23, up 12 percent YoY due to the swelling up of dry well expenses. Whereas, in 3QFY23, exploration costs arrived at Rs. 4.246 billion, up by 52 percent YoY due to the higher cost of the dry well (Bhambra-02) during the quarter tagged with higher seismic activities. Other income in 9MFY23 showcased a hefty jump of 120 percent YoY, clocking in at Rs. 65.184 billion. Whereas, the other income in 3QFY23 depicted a massive increase of 4.5x YoY, reaching Rs. 37.446 billion due to an exchange gain of Rs. 23.6 billion during the quarter coupled with higher interest income on cash and cash equivalents. The company booked effective taxation at 35 percent in 3QFY23 against 33 percent in 3QFY22.