September 29, 2020 (MLN): Oil and Gas Development Company (OGDC) recently conducted its analyst briefing to deliberate upon the latest financial performance, as well as the ongoing projects of the company.
In the announcement made via PSX yesterday, the company observed a 15.47% decline in net profits in FY2020 to Rs 1 billion, as compared to the profits of Rs 1.18 billion earned in FY19. The earnings per share of the company also nosedived by the same percent from Rs 27.53 to Rs 23.27
According to Foundation Securities, during the year under review, the production of oil stood at 36.1k bpd i.e. down by 11.6%, whereas gas stood at 893 mmcfd i.e. down 11.9%. The management attributed the decline in production to the disruption in business activity caused by the outbreak of COVID-19.
Furthermore, the management informed that the price of oil went down from $58.74/bbl last year to $46.76/bbl this year, while the price of gas surged from Rs. 337.66/Mcf last year to Rs. 393.32/Mcf this year.
It was further apprised by the management that 25 wells were spud during the year, which included 15 exploratory wells, 5 development wells and 5 reentry wells. The exploratory efforts by the company also resulted in the discovery of oil and gas five times.
With a capital expenditure budget of Rs. 55 billion, the company is now planning to spud up to 45 wells during the Fiscal Year 2021, out of which 21 wells would be exploratory in nature.
The company is also eyeing the assets of Italian Company ENI, as the latter had announced its plan to wind up operations in Pakistan after having a successful run in the country for two decades. The Italian multinational is actively seeking investors to buy its upstream projects, as well as several producing assets in Bhit, Badhra, and Kadanwari, along with its processing facilities and several non-operating assets.
OGDC is also expected to see an inflow of oil and gas of up to 25bbl and 18mmcfd per day from Gudanwari and Chabaro development projects, starting from February 2021. On the contrary, the Qadirpur gas compression facility would be commenced by November 2021, wherein it would contribute around 280mmcfg of gas.
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