Oil and Gas Development Company’s (OGDC) profits decreased by 15.50 percent to Rs. 100 billion in the year ended June 30, 2020 due to a significant drop in oil prices along with lower production across the board.
The state-owned oil and gas exploration firm had registered a profit of Rs. 118.38 billion in the previous year, according to a company notification sent to the Pakistan Stock Exchange (PSX) on Monday.
Along with the result, OGDC also announced a final cash dividend of Rs. 2.50 per share, taking the cumulative dividend payout to Rs. 6.75 in FY20.
The company’s sales clocked in at Rs. 244 billion, depicting a decrease of 6 percent as compared to Rs. 261.48 billion recorded in FY19, mainly due to a decline in crude oil prices in rupee terms.
Furthermore, oil and gas production during the year also witnessed a decline of 11 percent and 10 percent, respectively. Interestingly, revenue decline remained limited due to a higher proportion of gas-related revenues.
The company in FY20 recorded average net crude oil production of 36,073 bpd, average net gas production of 893 MMcfd, average net Liquified Petroleum Gas (LPG) production of 739 MTPD and average net Sulphur production of 54 MTPD.
Accordingly, twenty-five wells were spud, comprising of fifteen exploratory/appraisal, five development and five re-entry/sidetrack wells in FY20. The Average net realized price of oil was $46.76/barrel during FY20 as against $58.74/barrel last year.
The net realized price for natural gas was Rs. 393.32 per mmcf in FY20 as against Rs. 337.66 per mmcf last year. The company has recognized eight dry wells in FY20 as compared to two wells in FY19.
The other income saw a decline of 32.65 percent to Rs. 21.74 billion as compared to Rs. 32.28 billion due to the absence of heavy exchange gains. Exploration and prospecting expenses grew to Rs. 18.21 billion, up by 45.8 percent as compared to Rs. 12.49 billion.
Finance cost went up by 78.11 percent to Rs. 3.01 billion as compared to Rs. 1.69 billion during the last year.
OGDC is also evaluating ENI assets in Pakistan as it is planning to sell its assets in Pakistan. It has also received Rs. 6.5 billion from Uch Power Private Limited, from the disbursements under the Pakistan Energy Sukuk-II.
In addition, the company has also received some payments from SSGC and SNGP with average collection standing at around 70 percent. Earnings per share of the company were decreased to Rs. 23.27 from Rs. 27.53.
OGDC’s share at the bourse was closed at Rs. 104.09, down by Rs. 0.01 or 0.01%, with a turnover of 2.91 million shares on Monday.