According to Inter-market Securities, the increase in
profitability is attributable to absence of one-off provisions of PKR23 billion
booked on TFCs coupled with lower operating cost. It also announced an interim
dividend of PKR3.0/ share.
Key highlights from 1QFY25 result:
Net revenues were down 8%QoQ to PKR106 billion, mainly due
to lower oil prices coupled with estimated 4% decline in gas production.
Operating expenses reduced by 27%QoQ to PKR27 billion likely
due to lower work-over expensed during the quarter.
Other income surged to PKR26 billion as compared to a loss
of PKR3 billion, due to the absence of one-off provisions booked against clearance
of TFC in the earlier quarter.
OGDC’s effective tax rate for the quarter rose to 51% during
the quarter under review.
Despite gas curtailment and lower oil prices, OGDC posted
decent earnings. Earnings are expected to slightly improve on account of
improving gas production.
On production front, the company in a JV with MARI is
developing a high-potential asset Shewa in Waziristan block, which has potential
reserves of 1.4tcf.
Moreover, the company’s own field Bettani (Wali) is expected
to produce 3,000bpd of oil and 35mmcfd of gas, following the successful
drilling of Bettani-2 and Bettani Deep-1.
