Pakistan’s largest Exploration & Production (E&P) company, Oil & Gas Development Company (OGDC) has reported 9MFY19 profit after tax of Rs85.3 billion (EPS: Rs19.84), up 50%YoY, but slightly below market expectation of Rs20.35/share on account of lower than expected gross profits. Announcement of result was accompanied by interim dividend of Rs2.75/share, slighting higher than analysts’ forecast of Rs2.5/share raising the allure of this macro-hedged play. Major facets of the results included: 1) a 30%YoY growth in net sales, where favorable movements in macro variables outweighed stagnant production flows, 2) gross profits improving by 44%YoY with gross margins rising to 64.7% as compared to 58.6% for the corresponding period last year and 3) other income recorded at Rs17.8 billion, up 59%YoY.