Islamabad October 25 2024: Oil & Gas Development Company Limited, the largest Oil and Gas Company of Pakistan, share price turns negative from high of PKR 182.8 in today’ trading at Pakistan Stock Exchange as lower cash payout disappoints investors.
The Company registered Sales Revenue and Profit after Tax of PKR 106.011 billion and PKR 41.020 billion respectively translating into an Earnings per Share of PKR 9.54 compared with PKR 11.40 in the same period last year. Unfavorable exchange rate variance combined with lower crude oil basket price averaging USD 79.28/barrel against USD 84.32/ barrel in the corresponding period last year impacted business financials.
The Company’s Sales declined due to reduction in average basket price of crude oil owing to confluence of weakened demand from China, strategic geopolitical maneuvers and sluggish economic activity in major economies, which led to lower realized price of USD 64.31/barrel (1Q 2023-24: USD 69.41/barrel). Likewise, Sales were also affected by decline in average realized price of gas to PKR 706.30/Mcf (1Q 2023-24: PKR 710.89/Mcf) accompanied with appreciation of Pak Rupee against US Dollar to PKR 278.79/USPKR (1Q 2023-24: Rs 291.58/USD). Whereas, increase in average realized price of LPG to PKR 162,452/Ton (1Q 2023-24: PKR 134,346/Ton) lent partial relief to business revenue.
The Company using in-house resources processed/ reprocessed 488 Line km of 2D seismic data. Furthermore, geological fieldwork of 386 Line km was carried out in Nowshera block. However, seismic activities were affected by security constraints and partial operation in Suleiman and Killa Saifullah blocks
On the drilling front, total drilling recorded was 10,678 meters (1Q 2023-24: 7,052 meters). Moreover, drilling and testing work of 2 wells pertaining to previous fiscal year was also completed. Moreover, average daily net saleable crude oil, gas and LPG production clocked in at 31,768 barrels, 699 MMcf and 618 tons in comparison to 32,835 barrels, 762 MMcf and 713 Tons in the comparative period.
“In line with its plan to diversify its business, OGDCL has entered into definitive agreements with the Federal Government, Government of Balochistan, GHPL, PPL and Barrick Gold Corporation for extraction of gold and copper reserves from Reko Diq” says MD/CEO of OGDCL, Mr. Ahmed Hayat Lak.
