OGDC likely to enjoy substantial growth in earnings despite failed exploration projects

September 17, 2019 (MLN): Oil and Gas Development Company Limited (OGDC) is slated to announce its financial results for the year ended June 30, 2019, on Wednesday i.e. September 18, 2019. 

According to the overall consensus of market experts, the company is likely to report Profit after Tax figure of Rs. 116 billion (EPS: Rs. 27), signifying an increase of 48% over the earnings of last year. Furthermore, the company is expected to pay Cash Dividend of Rs. 3 per share, taking the full year payout to Rs. 11.5 per share.

Going by the overall picture provided by aforementioned research houses, the company’s revenue is expected to increase on account of higher oil prices as well as depreciation of local currency. Moreover, the non-core income is expected to increase on the back of higher exchange gains and interest income earned during the period.

The company is likely to report a significant leap in operating costs, especially during the fourth quarter. This is because of the substantial explorations costs incurred on Qadirpir Deep-X 1 and Kekra-01 wells.  

Copyright Mettis Link News