FLASHNEWS:

OGDC Reports Record Quarterly Earnings, Tax Reversal Boosts Profit

Islamabad, The Oil and Gas Development Company Ltd (OGDC) announced its financial results for the second quarter of fiscal year 2024 (2QFY24) today, revealing a historic high in its quarterly Profit After Tax (PAT) at PkR74.25 billion, which represents a significant increase of 52% and 78% on a quarterly and yearly basis, respectively. This performance significantly surpassed analysts' expectations, which had predicted earnings of PkR10.51 per share for the quarter.

According to AKD Securities Limited, the remarkable surge in OGDC's bottom line is primarily attributed to a taxation reversal of PkR2.12 billion during the quarter, resulting in an effective tax rate of -3% compared to the normalized rates of 43% and 35% during the first quarter of FY24 and the second quarter of FY23, respectively. The company's sudden dip in taxation, against the backdrop of holding deferred taxation liabilities worth PkR86.2 billion, suggests the need for further clarification on this matter.

Revenue for OGDC stood at PkR115.2 billion, marking a slight decline of 4% from the previous quarter but showing a 19% increase year-over-year. The fluctuation in revenues can be attributed to changes in oil and gas production, which saw a 2% increase and a 13% decrease quarter-over-quarter, respectively.

Operational expenses for the quarter reached PkR33.2 billion, witnessing an increase of 17% from the previous quarter and 55% from the same quarter last year. This rise in expenses is potentially linked to the completion of several development projects, such as the Khewari Processing Plant and discoveries at existing fields like KPD-TAY and the Khewari Block.

Exploration expenses were reported at PkR2.39 billion, decreasing by 14% from the previous quarter, remaining relatively stable amidst routine geophysical survey activities.

In addition to its financial results, OGDC announced a cash dividend of PkR2.50 per share, maintaining the total payout for the half year at PkR4.0 per share, consistent with the same period last year.