OGDC’s earnings clock in at whopping Rs224.6bn in FY23 up 68% YoY

Oil and Gas Development Company Limited (OGDC), the largest E&P company in the country, posted a profit-after-tax (PAT) of Rs224.62 billion in fiscal year 2022-23, an increase of nearly 68%, compared with PAT of Rs133.78 billion reported in the same period last year.

Resultantly, earnings per share (EPS) were recorded at Rs52.23 in FY23 as compared to EPS of Rs31.11 in SPLY. The board of directors met on September 28 to review the company’s financial and operational performance during the period ended June 30, 2023.

The company’s board recommended a final cash dividend of Rs2.75 per share i.e. 27.5%. This is in addition to interim dividends already paid at Rs5.8 per share i.e. 58%.

According to the notice to the Pakistan Stock Exchange (PSX) on Thursday, OGDC’s net sales during FY23 rose to Rs413.59 billion compared to Rs335.46 billion in SPLY, which equates to over 23% increase.

Owing to higher sales, the company’s gross profit increased by over 24% clocking in at Rs269.73 billion in FY23, compared to Rs216.92 billion in SPLY.

Meanwhile, OGDC’s finance and other income also rose to Rs154.69 billion in FY23, compared to Rs46.57 billion in SPLY, an increase of over 232%.

On the other hand, the company’s cost of finance increased to Rs4.72 billion in FY23, as compared to Rs2.34 billion in same period last year, a jump of nearly 102%. The higher finance cost during the period could be attributed to the rise in interest rate during the period.

Meanwhile, the exploration and prospecting expenses and administrative expenditure of OGDC increased to Rs26.27 billion in FY23, as compared to Rs20.5 billion in SPLY, an increase of 28%.

OGDC, which has the most extensive exploration acreage in Pakistan, is involved in operations including exploration, drilling operation services, production, reservoir management, and engineering support.

SOURCE: Business Recorder – Latest News

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