Oil and Gas Development Company Limited’s (OGDC) announced its financial results for the 3rd quarter that ended on March 31, 2020.
The country’s leading oil and gas company’s profits surged by 6.70% to Rs. 30.46 billion as compared to Rs. 28.55 billion in the same period last year. According to a report by Foundation Securities, the rise in profits was due to the higher WHG prices, devaluation of the rupee and a higher exchange rate gain.
This took the nine months profits to Rs. 83.64 billion, down by 2% as compared to Rs. 85.31 billion recorded in the same period in the previous year.
The company, however, has skipped dividends due to the piling up of circular debt and the overall gloomy oil outlook.
Despite the fall in oil prices, revenues remained flat, as they were posted at Rs. 64.97 billion, compared to Rs. 65.14 billion. This was due to the devaluation of the Rupee against the US dollar.
During the quarter, other income saw an increase of 46.33% to Rs. 8.78 billion as compared to Rs. 6.00 billion recorded in the corresponding period of the last year. The increase in other income was possibly due to the exchange gains.
According to the report from Topline Securities, exploration costs increased by 50.50% to Rs. 3.07 billion when compared to Rs. 2.04 billion as the company recorded two dry wells compared to yesteryear. Although, PPIS data reported that of the three wells, Rangunwari was expensed in 2QFY20.
The finance cost of the company went up by 97% to Rs. 839 million compared to Rs. 426 million recorded in the previous period.
Share of profit in the associate (net of taxation) increased by 28% to Rs. 1.47 billion compared to Rs. 1.15 billion.
Earning per share of the company was reported at Rs. 7.08 as compared to Rs. 6.64 in the previous quarter.
OGDC’s share at the exchange closed at Rs. 95.27, up by 0.13% or Rs. 0.12, with a turnover of 4.04 million shares on Friday.