Fakiha Tariq

Oil and Gas Development Company Limited (OGDC) gained substantial increases in revenue, gross profit and net profit during the nine-month period (July-March) of the ongoing fiscal year 2022-23 compared to the corresponding period of the previous fiscal, WealthPK reports. OGDC made gross sales of Rs309 billion in 9MFY23. On this, the company posted gross profit of Rs212 billion and net profit of Rs159 billion. Therefore, OGDC reported a gross profit ratio of 69% and a net profit ratio of 51.64% in 9MFY23. OGDC posted earnings per share of Rs37.12 in the nine-month period of FY23.

The largest company of the Pakistan Stock Exchange (PSX) pushed its revenues up by 28.7% from Rs240 billion in 9MFY22 to Rs309 billion in 9MFY23. Likewise, the gross profit of Rs161 billion in 9MFY22 grew by 31.7% in 9MFY23. The OGDC’s net profit of Rs112 billion declared in 9MFY22 soared by 42.5% to Rs159 billion in 9MFY23. In 9MFY23, the company also increased its profitability margins and earnings per share values as compared to 9MFY22. Registered on PSX with the symbol “OGDC,” it is the largest firm in oil and gas exploration sector with the market capitalisation of Rs339.7 billion.

Quarterly review

Quarterly analysis reveals the company made the highest sales and gross profit in the first quarter (July-September) of FY23. In terms of net profits, the largest oil firm in Pakistan posted the highest value in third quarter (January-March). OGDC enjoyed profit-making at the gross and net levels in all three quarters of the ongoing fiscal. In the first quarter, OGDC posted gross revenues of Rs106 billion and gross profit of Rs75 billion on it. The company posted net profit of Rs53 billion. Therefore, the gross and net profit ratios were reported to be 71% and 50%, respectively. In 1QFY23, the company reported the earnings per share of Rs12.39.

In the second quarter (October-December), OGDC’s gross sales decreased to Rs97 billion and gross profit to Rs64 billion from the figures of the previous quarter. The company posted a net profit of Rs41 billion this quarter, which was also down from the previous quarter. Therefore, the gross profit and net profit ratios were calculated at 66% and 43%, respectively. In 2QFY23, the company reported the earnings per share of Rs9.70.

In the recently ended third quarter (January-March), OGDC reported the second highest gross sales of Rs105 billion and made gross and net profits of Rs72 billion and Rs64 billion, respectively. The gross and net profit margins for 3QFY23 were recorded at 68% and 61%, respectively. In the third quarter of FY23, OGDC posted the earnings per share of Rs15.03, which was also the highest in the three quarters under review.

Credit: Independent News Pakistan-WealthPk