OGDC misses quarterly profit estimates

By MG News | Category Equity | September 23, 2024 at 02:57 PM GMT+05:00

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September 23, 2024 (MLN): Oil & Gas Development Company Limited (PSX: OGDC) missed analysts' estimates for fourth-quarter profit, significantly hurt by other losses, sending its shares down 2.75% in intraday trading.

Pakistan's largest E&P posted a profit after tax of Rs37.87 billion [EPS: Rs8.81], down 41.7% compared to a profit of Rs64.98bn [EPS: Rs15.11] in the same period last year (SPLY).

The company incurred other losses of Rs3.2bn as against a significant other income worth Rs89.51bn earned in SPLY.

Earnings were also lower than the industry expectations of Rs9.76 per share. For the full year ending June 2024, the company earned a net profit of Rs208.98bn [EPS: Rs48.59], a fall of 7.0% from last year.

Along with the results, the company announced a final cash dividend of Rs4 per share. This is in addition to the interim dividend already paid at Rs6.1 per share during the year.

Going by the quarterly results, the company's revenue rose 10.6% to Rs115.53bn as compared to Rs104.45bn in SPLY.

The cost of sales also rose by 8.6% but was lesser than proportionate to sales rise, which improved the gross profit by 12.3% to Rs64.76bn in Q4 FY24.

The gross margins rose to 56.0% as compared to 55.2% in SPLY.

On the expense side, the company's administrative expenses fell 30.8% from a year ago to Rs2.34bn, selling and distribution expenses fell 50.1% to Rs4.06bn, and other operating expenses fell 58.7% to Rs2.85bn.

The company’s finance cost surged by 53.6% and stood at Rs1.89bn as compared to Rs1.23bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs16.31bn against the Rs66.17bn paid in the corresponding period of last year, depicting a fall of 75.4%.

This translates to an effective tax rate of 30.1% as compared to 50.5% in SPLY.

Unconsolidated (un-audited) Financial Results for quarter ended June 30, 2024 (Rupees in '000)
	Jun 24	Jun 23	% Change
Sales	115,534,148	104,445,620	10.62%
Cost of sales	(50,777,724)	(46,763,671)	8.58%
Gross Profit/ (loss)	64,756,424	57,681,949	12.26%
Administrative Expenses	(2,343,410)	(3,386,392)	-30.80%
Selling And Distribution Expenses	(4,060,019)	(8,128,958)	-50.05%
Share Of Profit / (Loss)	3,771,101	3,610,975	4.43%
Other Income/ (Loss)	(3,196,681)	89,508,247	-
Other Operating Expenses	(2,851,877)	(6,902,788)	-58.69%
Finance Cost	(1,889,887)	(1,230,062)	53.64%
Profit/ (loss) before taxation	54,185,651	131,152,971	-58.69%
Taxation	(16,313,589)	(66,174,078)	-75.35%
Net profit/ (loss) for the period	37,872,062	64,978,893	-41.72%
Basic earnings/ (loss) per share	8.81	15.11	-

Amount in thousand except for EPS

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