Oil and Gas Development Company Limited’s (OGDCL) profits improved 6% to Rs 63.80 billion in fiscal year 2016-17.
The company executives announced the results of the company, reporting Net Sales revenues of Rs. 171.829 billion during the period (FY July ’16 – June ’17). The company reported sales on average net realized oil price of USD 44.04/billion an average net realized price of Natural Gas sold at Rs. 239.08 during the reported year. The company’s reported Earnings per share for the period totaled at Rs. 14.83.
The company declared a final cash dividend of Rs. 2.00 per share
The effective tax rate increased to 28.42% (Rs 25.34 billion) from 25.50% (Rs 20.53 billion) in FY16.
In the preceding fiscal year, the oil and gas exploration and production firm had booked a profit of Rs59.97 billion.
According to the profit and loss accounts of the firm at PSX the firm booked other income at Rs 16.02 billion, up 9% from Rs 14.70 billion last year.
In a teleconference held by the senior management of Oil and Gas Development Company Ltd. OGDCL, the top management responding to one of the queries informed that it is currently considering plans to expand into the international markets; potentially in Central Asia, Middle East and African region. In the efforts to materialize these inveestments, the company informed that it has entered into agreements with international Oil & Gas Exploration companies which include MOL and Gazprom.
On the production growth front, the Management informed that it currently planning to direct future Capital expenditure towards completion of Nashpa/Mela Development Project LPG Plant. The company expects completion by September, 2017.
The company expects crude production of 1120 bbls/day with 340 MTD production of LPG. The management informed that by the end of November, 2017 the field will come online and start production.
He informed that the company has resolved the issues of de-bottlenecking of operations at KPD and the field is being commissioned once again. He said that before the de-bottlenecking, he said that the project was producing 180 MMscfd per day whereas after the issues have been resolved, the field output is expected to reach full production by the coming week.
Commenting on the Jhal Magsi Development Project he said that, the company awaits clarity from Government regarding laying of gas line by SSGCL or some alternate gas buyer.
He also mentioned that due to better security conditions in the province of Baluchistan, the company intends to further explore the region and increase its footprint in the province. The company currently operates 25 New and Old exploration blocks in Baluchistan province and is considering expansion into the province in the coming future.