OGDC reports Rs91bn profit

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KARACHI : Oil and Gas Development Company (OGDC), the biggest listed company on the KSE with market capitalisation of $10 billion, posted profit of Rs90.8bn for financial year ended June 30.

It translated into earning per share (eps) at Rs21.11, down 6 per cent from eps at Rs22.53 earned in the corresponding period of the previous year.

The board of directors announced final cash dividend at Rs2.75 per share.

The earnings of the oil and gas giant fell short of most analysts' forecast of eps between Rs23.7 and Rs24.0.

The downside earnings added pressure on the stock market where the OGDC stock declined by Rs5.63 to Rs239.29.Analyst Asad I.Siddiqui commented that about three-fold increase in exploration and prospecting cost, amounting to Rs15bn was the major culprit in the fall of profit.

It was thought to be due to increase in exploration and prospecting costs.

Topline of the company grew by 13pc on account of higher oil production by 7pc; depreciation in value of rupee by 8pc and decline in international oil prices by 2pc during the period under review.

On the oil front, production from non-operated fields increased by 13pc backed by production up tick from Makori east, which diluted the adverse impact of decline from other ageing fields.

For 4QFY13, company reported eps at Rs3.51 which was down by 42pc from earlier quarter on account of rise in exploration costs by 76pc to Rs6bn and higher taxation (effective rate at 54pc in 4QFY13).

Courtesy: Dawn

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