OGDC reports 7% decline in annual profit

Pakistan's Oil and Gas Development Company (OGDC) has reported a net profit of PKR 208.975 billion (EPS: 48.59) for the fiscal year ending June 30, 2024, marking a 7% decrease from the previous year's profit of PKR 224.6 billion (EPS: 52.23).

The company also declared a final dividend of PKR 4/share, adding to the interim dividend of PKR 6.1/share already distributed to shareholders.

OGDC's sales revenue for FY24 saw a 12% increase, reaching PKR 463.7 billion compared to PKR 413.6 billion in the previous year. This growth was driven by a 2% rise in oil production and a 12% depreciation of the PKR against the USD. In the last quarter of FY24, net sales surged due to a 5% increase in oil production and a 9% rise in oil prices, according to an analyst at Arif Habib Limited (AHL).

The company's exploration costs dropped by 34% to PKR 12.56 billion in FY24, attributed to lower costs associated with the dry well Badhra Dir-16 compared to the dry well Chak 20-01 in FY23. However, other income fell by 73%, totaling PKR 41.344 billion for the year. OGDC also reported a reduction in effective taxation, which stood at 30% in 4QFY24, down from 50% in 4QFY23.

During the year, OGDC spud 13 wells including 7 exploratory/appraisal wells and 6 development wells. Exploratory efforts yielded 5 gas condensate discoveries viz., Chak 214-1 in district Rahim Yar Khan, Punjab, Dars West-2 in district Tando Allah Yar, Kharo-1 in district Khairpur and Nur West-1 in district Sujawal, Sindh and Togh-2 in district Kohat, KP.

Average net saleable crude oil, gas and LPG production were 33,117 barrels per day, 717 MMcf per day and 717 Tons per day during the year under review.