Oil and Gas Development Company Limited (OGDCL) announced a profit of Rs 30 billion for the half year ended December 31, 2016, down by 11.7% from Rs 34 billion in the same period of the previous year, the company’s financial results revealed on Friday.
Earnings per share (EPS) declined to Rs 6.98 as compared to Rs 7.95 in the same quarter of the last year. The company announced a cash dividend of Rs 1 per share i.e. 10%.
On the other hand, the company’s quarterly profit saw a decrease of 3.7% (quarter on quarter) from last year’s Rs 15.9 billion to this year’s Rs 15.3 billion.
Analysts at AKD Securities say that the result was below expectations. A report by Inter-market Securities stated the same.
“Major deviation from our estimate came from higher than expected operating expenses, which can be attributed to the increased production from Nashpa and Tal block, which are located in high-cost basins,” said the report.
However, the report added that this was offset by lower than the expected exploration expenses of Rs 3.8 billion, where they expected dry well cost of three wells (Shawa, Soghri and Daru).
Net sales of Rs 41 billion was up 5% quarter on quarter where oil production rose by 14% during the quarter with 10% higher oil prices. Major contribution was lent by Nashpa. Lower gas production was, however, considered as a drag. Also, the LGP prices were expected to be lower.
The share price of OGDCL declined by 1.2% to Rs 156.55 from yesterday’s Rs 159.51. A total 581,500 shares of the company were traded on the bourse at day end.