April 27, 2021 (MLN): Oil and Gas Development Company Limited (OGDC) has unveiled its financial performance for 9MFY21, where the company’s net profits declined by 20% YoY to Rs66bn (EPS: Rs15.43) as against the profits of Rs83bn (EPS:19.33) reported in the corresponding period last year.
The E&P company’s profitability was largely affected by a 19% YoY drop in oil prices given weak oil demand internationally, coupled with a 3% and 7% YoY dip in oil and gas production, respectively.
On a quarterly basis, profitability deteriorated from Rs30bn to Rs24.1bn. This comes on the back of a 1% and 9% YoY decrease in oil and gas production, respectively. However, oil prices staged a recovery climbing up by 12% YoY during 3QFY21.
Due to the reduction in the E&P firm’s oil and gas production during 9MFY21, OGDC’s top line was down by 7% YoY. This was also due to lower average realized crude oil and LPG prices during the period.
The exploration and prospecting expenditure during 9MFY21 shrank by 20% YoY, arriving at Rs10.8bnn amid five dry wells incurred during the period against eight dry and abandoned wells in the corresponding period last year.
Alongside the result, the company announced a cash dividend of Rs5.4 per share for the period of 9MFY21.
Furthermore, due to the absence of exchange gains, the Other income of the company portrayed a massive decline of 65% YoY, clocking in at Rs8.22bn against Rs23.99bn in SPLY.
On the contrary, lower operating expenses and financial charges along with an increase in the share of profit in associates positively influenced the financials of the company.
On the taxation front, the company’s effective tax rate during 9MFY21 remained static at 32%.
Profit and Loss Account for the Nine months ended March 31, 2021 ('000 Rupees) |
|||
---|---|---|---|
|
Mar-21 |
Mar-20 |
% Change |
Sales – net |
176,381,737 |
189,447,147 |
-6.90% |
Royalty |
(20,173,581) |
(22,360,258) |
-9.78% |
Operating expenses |
(49,868,270) |
(45,510,487) |
9.58% |
Transportation charges |
(1,335,891) |
(1,314,928) |
1.59% |
|
(71,377,742) |
(69,185,673) |
3.17% |
Gross profit |
105,003,995 |
120,261,474 |
-12.69% |
Finance and Other income |
8,224,902 |
23,998,879 |
-65.73% |
Exploration and prospecting expenditure |
(10,809,138) |
(13,502,181) |
-19.95% |
General and administration expenses |
(3,418,751) |
(3,846,426) |
-11.12% |
Finance cost |
(1,680,310) |
(2,339,520) |
-28.18% |
Workers' profit participation fund |
(5,099,597) |
(6,449,833) |
-20.93% |
Share of profit in associate – net of taxation |
4,671,248 |
4424427 |
5.58% |
Profit before taxation |
96,892,349 |
122,546,820 |
-20.93% |
Taxation |
(30,546,224) |
(39,424,573) |
-22.52% |
Profit for the period |
66,346,125 |
83,122,247 |
-20.18% |
Basic and diluted earnings per share – Rupees) |
15.43 |
19.33 |
-20.18% |
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