Islamabad February 22 2023: Oil and Gas Development Company Limited (OGDCL) report net profit after taxation during the first half was PKR 95.0 billion compared to PKR 68.8 billion in the corresponding period last year, according to company at the Pakistan Stock Exchange.
The Board of Directors declared second interim cash dividend of Rs 2.25/- per share.
Oil and Gas Development Company Limited (OGDCL), (Ticker: OGDC), today announced its financial results for the first half ended 31 st December 2022. Financial Statements were prepared in accordance with International Financial Reporting Standards.
MD/CEO of OGDCL, Syed Khalid Siraj Subhani, commenting on the Company’s first half financial results FY 2022-23, stated, “I am pleased to report that the Company on the back of favorable oil price environment during the reporting period registered a growth of 34% and 38% in its top and bottom line financials respectively. The Company registered Sales Revenue and Profit after Taxation of Rs 203.236 billion and Rs 95.012 billion respectively translating into an Earnings per Share of Rs 22.09 compared with Rs 16.02 in the same period last year. On the operational front, the Company continued with its exploration, development and production activities though these activities were hampered by floods, security clearance and delay in the opening of LCs for critical spares. On the exploration front, the Company spud 4 wells including 3 exploratory wells; Shahpurabad-1, Chak 20-1 & Gaja Wah-1 and 1 development well; Chanda-7, while total drilling recorded during the six months was 17,249 meters.”
He added, “OGDCL’s production during the period under review contributed around 46%, 29% and 37% towards Country’s total oil, natural gas and LPG production respectively. Its average daily net saleable crude oil, gas and LPG production clocked in at 33,061 barrels, 772 MMcf and 730 tons in comparison to 36,788 barrels, 827 MMcf and 814 Tons in the comparative period respectively. Production output was impacted due to natural decline coupled with forced production curtailment owing to torrential rains/flood at Palli, Mangrio and KPD-TAY fields. The reduction in production from NJV fields also contributed towards lower hydrocarbon output. As regards ongoing development projects, installation and commissioning of compression units are underway at Dakhni, Uch and KPD-TAY fields to maintain and enhance production.”
“Lastly, it gives me immense pleasure to acknowledge and express my sincere thanks to the Management and employees of the Company for their relentless efforts and hard work. Moving forward, I will continue to bank on the trust and support of all our stakeholders so as to ensure that OGDCL continues to spearhead the Country’s E&P sector, safely and responsibly.” Siraj added.
OGDCL during half year ended 31 December 2022 registered improved Sales Revenue of Rs 203.236 billion (1H 2021-22: Rs 151.163 billion). Higher sales are primarily attributable to increase in the realized price of crude oil averaging US$ 78.60/barrel (1H 2021-22: US$ 63.23/barrel). Moreover, the Company recorded increase in the realized prices of gas and LPG averaging Rs 570.00/Mcf (1H 2021-22: Rs 404.28/Mcf) and Rs 139,661/Ton (1H 2021-22: Rs 113,962/Ton) respectively. Furthermore, rise in average exchange rate from Rs 169.98/US$ to Rs 223.85/US$ lent strength to the financials.
In addition to the above, the Company’s profitability during the period under review was positively impacted by increase in interest income on investment and bank deposits and share of profit in associates. However in comparison to corresponding period last year, increase in operating expenses owing to inflationary cost trends, workovers at Manzalai-4, Gorwar-1 and Miano-12, repairs and maintenance and change in decommissioning estimates impacted the financial performance. Nevertheless, the Company recorded Profit after Tax of Rs 95.012 billion (1H 2021-22: Rs 68.883 billion) translating into an Earnings per Share of Rs 22.09 (1H 2021-22: Rs 16.02).
The Board has announced second interim cash dividend of Rs 2.25 per share (22.50%) for the year ending 30 June 2023. This is in addition to the first interim cash dividend of Rs 1.75 per share (17.50%) already declared and paid during the fiscal year.
OGDCL being the market leader in E&P sector of Pakistan holds the largest exploration acreage and portfolio. During the reporting period, its exploration acreage increased to 89,459 sq. km (30 June 2022: 87,290 sq. km), owing to grant of a new exploration license Chah Bali, representing 40% of Country’s total area under exploration (source: PPIS). The exploration portfolio comprises 49 owned and operated joint venture exploration licenses (30 June 2022: 48 exploration licenses). Additionally, the Company possesses working interest in 9 exploration blocks operated by other E&P companies.
In an effort to discover oil and gas reserves, OGDCL acquired 626 Line km of 2D seismic data (1H 2021- 22: 652 Line km) and 221 Sq. km of 3D seismic data (1H 2021-22: Nil Sq. km) representing 56% and 31% of total 2D and 3D seismic data acquisition in the Country respectively. Moreover, the Company using inhouse resources processed/reprocessed 1,393 Line km of 2D and 360 Sq. km of 3D seismic data. Additionally, 186 Line km of geological field work was carried out in Nowshera EL. Exploration activities during the reporting period were affected by the torrential rains/flood (266 days out of 900 days of seismic operations lost), non-delivery of imported ground electronics and security concerns. However, the Company is making all out efforts to recover most of deferred seismic activities with in current fiscal year.
On the drilling front, OGDCL spud 4 wells (1H 2021-22: 6 wells) including 3 exploratory wells; Shahpurabad-1, Chak 20-1 & Gaja Wah-1 and 1 development well; Chanda-7. Moreover, drilling and testing of 6 wells pertaining to previous fiscal years was also completed. However, 2 planned wells; Bobi11 and Bobi Deep-1 could not be spud due to gas oozing issue at drilling sites. Total drilling recorded during the six months was 17,249 meters (1H 2021-22: 23,913 meters).
