Leading oil and gas exploration company of Pakistan, Oil & Gas Development Company (OGDC) has posted profit after tax of Rs30.5 billion (EPS: Rs7.08) for 3QFY20, up 7.08%YoY. The result is above expectations mainly on the back of higher than expected revenues.
The Company has likely recorded a one-off retrospective adjustment of Uch’s gas re-pricing of above Rs5 billion, details are awaited for more clarity. Excluding this one-off, the adjusted EPS is likely to be around Rs6.16.
Operating expenses for the quarter under review were reported at Rs15.8 billion (US$6.5/bbl). Over the last three quarters, average Opex has come to around US$6.4/bbl.
Exploration costs increased by 51%YoY as the Company recorded two dry wells, though PPIS data reported three of which one well Rangunwari, was expensed in 2QFY20.
Other income shot up by 46%YoY due to significant exchange gains, estimated around Rs3.5 billion.
Effective tax rate for 9MFY20 was marginally down to 32%, as compared to 33% for same period last year.