February 26, 2020 (MLN): Oil and Gas Development Company (OGDC) has announced the financial results for six months ended December 31, 2019, whereby it has reported net profits of Rs. 53.1 billion (EPS: Rs. 12.37), almost 6% lower than the profits of the same period last year.
The company also announced an Interim Cash Dividend for the quarter ended December 31, 2019, at Rs. 1.75 per share i.e. 17.5%. This is in addition to interim dividend already paid at Rs. 2.5 per share i.e. 25%.
The sales were up by 5.16% owing to the higher selling price resulting from the devaluation of PKR. On the other hand, the non-core income fell by 33% as there no one-off exchange gains present during the period. According to a search note by IGI Securities, the decline in non-core earnings was limited by the retrospective impact of revision in Uch field gas price notified by OGRA.
The company’s exploration costs depicted a 1.3x increase due to costs pertaining to one dry well and higher prospecting expense.
The finance costs also showed a substantial increase of 81% on the back of high-interest rates prevailing in the market.
Profit and Loss Account for the six months ended December 31, 2019 ('000 Rupees) | |||
|---|---|---|---|
Dec-19 | Dec-18 | % Change | |
Sales – net | 133,441,268 | 126,897,761 | 5.16% |
Royalty | (15,215,640) | (14,239,713) | 6.85% |
Operating expenses | (30,559,838) | (29,634,319) | 3.12% |
Transportation charges | (812,515) | (787,931) | 3.12% |
Gross profit | 86,853,275 | 82,235,798 | 5.61% |
Other income | 7,927,013 | 11,850,503 | -33.11% |
Exploration and prospecting expenditure | (10,425,171) | (4,481,784) | 132.61% |
General and administration expenses | (2,819,495) | (1,787,272) | 57.75% |
Finance cost | (1,499,901) | (829,631) | 80.79% |
Workers' profit participation fund | (4,149,267) | (4,459,962) | -6.97% |
Share of profit in associate – net of taxation | 2,949,618 | 2,211,624 | 33.37% |
Profit before taxation | 78,836,072 | 84,739,276 | -6.97% |
Taxation | (25,651,628) | (27,982,918) | -8.33% |
Profit for the year | 53,184,444 | 56,756,358 | -6.29% |
Basic and diluted earnings per share – Rupees) | 12.37 | 13.20 | -6.29% |
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