OGDC’s profit dips by 8% YoY in 1QFY24

November 01, 2023 (MLN): Oil and Gas Development Company Limited (PSX: OGDC) reported its earnings for the first quarter of FY24, wherein the profit after tax clocked in at Rs49.04 billion [EPS: Rs11.4] compared to a profit of Rs53.3bn [EPS: Rs12.39] in the same period last year (SPLY).

Along with the results, the company announced an interim cash dividend for the quarter at Rs1.6 per share.

Going by the results, the company's top line grew by 13.33% YoY to Rs120.14bn as compared to Rs106.01bn in SPLY.

The cost of sales, which includes royalty, operating expenses, and transportation charges also rose by 36.85% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 3.69% YoY to Rs77.98bn in 1QFY24.

During the period under review, the company's finance income shrank by 12.17% YoY to stand at Rs16.25bn in 1QFY24 as compared to Rs18.5bn in SPLY.

On the expense side, the company observed a rise in general and administration expenses by 2.18x YoY and exploration & prospecting expenditure by 70.28% YoY to clock in at Rs2.2bn and Rs2.63bn respectively during the review period.

The company’s finance costs also surged by 2.06x YoY and stood at Rs1.68bn as compared to Rs818.23m in 1QFY24, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs37.14bn against the Rs34.9bn paid in the corresponding period of last year, depicting a rise of 6.39% YoY.

Amount in thousand except for EPS

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