Karachi: Oil and Gas Development Company Ltd (OGDC) presented its financial and operational achievements for FY24 during an analyst briefing today, highlighting a 12% year-over-year increase in net sales and significant strategic developments.

According to AKD Securities Limited, OGDC’s net sales reached PKR 463.7 billion this fiscal year, driven by higher wellhead prices, despite a slight decline in the average realized prices for crude oil to US$68.7 per barrel. The company also noted a 17% increase in realized gas prices to PKR 712.9 per mmbtu. Production figures included a modest rise in crude oil output and a decrease in gas and LPG production, attributed to forced curtailments and reduced intake by power companies.

The briefing also covered OGDC’s exploration and development activities, including the operation of 54 exploration blocks and the drilling of 13 wells, which led to five new discoveries. These new wells collectively contribute 481 barrels per day of oil and 28 million cubic feet per day of gas.

Significant updates were provided on the Jhal Magsi development project, which has been approved for marginal gas pricing by the Economic Coordination Committee, with commissioning expected soon. The briefing further outlined major ongoing projects, such as the Uch compression project and KPD-TAY project, with completion targeted by March 2026.

Operational expenditures were reported to have increased by 32% due to lease expiries and additional payments to the Government of Pakistan. The company also recognized PKR 23 billion in impairment charges related to interest receivables.

Additionally, discussions regarding the Abu Dhabi Block are ongoing with ADNOC, focusing on the appraisal stages and future production shares. AKD Securities reiterated a ‘BUY’ stance on OGDC stock with a target price of PKR 180 per share by June 2025, anticipating a dividend yield of 10% for FY25E.