OGDC's profit surges by nearly 68%, announces dividend of Rs2.75

September 28, 2023 (MLN): Oil and Gas Development Company Limited (PSX: OGDC) struck it rich in FY23, experiencing a remarkable 67.9% YoY surge in profitability, with their profit after tax gushing forth at an impressive Rs224.62 billion [EPS: Rs52.23].

To note, in the previous year, the company earned a profit of Rs133.78bn [EPS: Rs31.1].

Along with the results, the company announced a final cash dividend of Rs2.75 per share i.e. 27.5%.

This is in addition to the interim dividend already paid at Rs5.8 per share i.e. 58%.

Going by the results made available by the company to the PSX, the top line increased by 23.29% YoY to Rs413.59bn as compared to Rs335.46bn in SPLY.

The cost of sales, which includes royalty, operating expenses, and transport costs, also rose by 27.5% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 24.35% YoY to Rs269.73bn in FY23.

Additionally, OGDC's finance and other income during FY23 grew by 3.32x YoY to stand at Rs154.69bn in FY23 as compared to Rs46.57bn in the previous year.

On the expenses side, the company saw an increase in exploration and prospecting expenditures, general and administration expenses, workers' profit participation fund by 22.06% YoY, 47.68% YoY, and 65.05% YoY respectively.

The company’s finance costs also skyrocketed by 2.02x YoY and stood at Rs4.72bn as compared to Rs2.34bn in FY22, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs159.15bn against the Rs98.74bn paid in the corresponding period of last year, depicting an increase of 61.19% YoY.

Amount in thousand except for EPS

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