Friday 17 February 2017

OGDC half yearly profit declines by 12 percent

Pakistan’s largest exploration and production (E&P) company, Oil & Gas Development Company Limited (OGDC) has announced its half yearly (1HFY17) financial results. The Board of Directors also approved payment of one Rupee per share interim dividend. Both the financial results and dividend payout are below expectations.
OGDC has posted net profit of R15.38 billion (EPS: Rs3.58), down 4%YoY while up 5%QoQ. The earnings are lower than with major deviation coming from lower topline, higher operating expenses and exploration costs partially compensated by lower effective tax rate. While the 1HFY17 earnings are down 12%YoY to Rs30.01 billion (EPS: Rs6.98) owing to lower realized gas prices (result of lagged oil price linkage). The earnings are expected to increase onwards due to improvement in realized gas prices and significant addition in flows from KPD-TAY, Sinjhoro and TAL Block.
The major takeaways are:  1) Topline remained flat on quarterly basis at Rs41.52 billion, however, it improved by 5%QoQ owing to improved oil production and higher oil price, 2) operating expenses increased to Rs15.28 billion in 2QFY17, 3) exploration expense increased 33%YoY due to relative differential in dry wells’ expenses, 4) though other income was relatively flat at Rs4.25 billion and 5) tax expenses declined by 27% to Rs4.29 billion due to lower effective tax rate.
OGDC: Income Statement






(Rs million)
2QFY17
2QFY16
YoY
1HFY17
1HFY16
YoY
Net Sales
41,516
41,673
0.0%
81,081
86,186
-6.0%
Royalty
-4,521
-4,680
-3.0%
-8,828
-9,694
-9.0%
Operating expenses
-15,277
-13,934
10.0%
-28,356
-26,568
7.0%
Transportation charges
-426
-401
6.0%
-836
-869
-4.0%
Gross profit
21,291
22,659
-6.0%
43,061
49,055
-12.0%
Other Income
4,248
4,305
-1.0%
9,309
8,295
12.0%
Share of profit
369
246
50.0%
922
615
50.0%
Exploration expense
-3,868
-2,906
33.0%
-8,189
-4,713
74.0%
Admin expense
-925
-897
3.0%
-1,653
-1,812
-9.0%
Finance cost
-412
-408
1.0%
-815
-833
-2.0%
WPPF
-1,035
-1,150
-10.0%
-2,132
-2530.32
-16.0%
PBT
19,668
21,848
-10.0%
40,503
48,076
-16.0%
Tax
-4,291
-5,902
-27.0%
-10,494
-13,870
-24.0%
NPAT
15,377
15,946
-4.0%
30,008
34,206
-12.0%
EPS
3.58
3.71
-4.0%
6.98
7.95
-12.0%
DPS
1.0
1.2
-17.0%
2.5
2.7
-7.0%
ETR
-22.0%
-27.0%
-
-26.0%
-29.0%
-



No comments:

Post a Comment