Oil and Gas Development Company’s (OGDC) profit declined by 8% to Rs49 billion during the first quarter (July-September) of the current fiscal year 2023-24 (1QFY24) compared to the same period of the last fiscal. The Pakistan’s largest exploration and production (E&P) company registered a profit of Rs53.3 billion in 1QFY23, according to the profit or loss accounts filed with the Pakistan Stock Exchange. Resultantly, the earnings per share (EPS) decreased to Rs11.4 in the period under review from Rs12.3 over the corresponding period of last year. Net sales surged by 13.3% to Rs120 billion during 1QFY24 from Rs106 billion recorded in 1QFY23. The increase in revenue was attributable to the weakening of the Pak rupee against the US dollar. Moreover, the gross profit also improved by 3.7% to Rs77.9 billion during the period under review. Oil and gas exploration costs increased 70.3% to Rs2.6 billion in 1QFY24 from Rs1.5 billion in 1QFY23. Furthermore, the company’s other income showed a decline of 12.2%, hitting Rs16.2 billion in 1QFY24 compared to Rs18.5 billion in 1QFY24.

Six years at a glance

Analysis of OGDC over the last six years shows that it posted the highest revenues in FY23. The company had a single dip in sales in FY20. From sales of Rs261.48 billion in FY19, the company's revenue declined to Rs232.93 billion in FY20. The E&P company saw its net profit fluctuating over the years. The firm posted the highest net profit of Rs224.62 billion in FY3. However, the company had two dips in profit in FY20 and FY21.

Company profile

OGDCL, a national oil and gas company, was established in 1961 as a public sector corporation before being converted into a public limited company in October 1997. Its primary operations involve exploration, drilling operation services, production, reservoir management and engineering support. The company remains steadfast in its commitment to harnessing innovative technologies and best practices to further enhance production capabilities, contribute to the nation’s energy needs, and fuel economic growth.

Credit: Independent News Pakistan (INP)