Oil and Gas Development Company Limited (OGDCL) is the most sensitive to crude oil prices among its competitors. The oil and gas exploration and production giant saw its bottom-line shrink by almost 29 percent year-on-year largely due to the cut in its oil revenues.

In 1HFY16, OGDCL’s net sales registered a decrease of over 27 percent. The average net realised price of crude oil sold was $43.09 per barrel as against $76.57 per barrel during corresponding period last year – decrease of over 43 percent. On 1HFY16, the average net realised price for natural gas sold was Rs255.47 per million cubic feet compared to Rs276.69 per million cubic feet in 1HFY15. On the production side, crude oil produced in 1HFY16 was 40,028 barrels per day versus 41,271 barrels per day in 1HFY15. Natural gas production for the same period under review stood at 1,116 mmcfd compared to 1,173 mmcfd in 1HFY15. During the first six months of FY16, the operational highlights of OGDCL included the eight new exploratory wells, six development wells, and two new oil and gas discoveries. The firm announced final cash dividend for the year at Rs1.20 per share.



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Oil and Gas Development Company (OGDC)

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Rs (mn) 1HFY16 1HFY15 YoY 2QFY16 2QFY15 YoY

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Sales 86,186 118,644 -27.4% 41,673 54,248 -23.2%

Gross profit 49,055 77,956 -37% 22,659 34,804 -35%

Other income 8,295 10,222 -19% 4,305 3,941 9%

Exploration &

prospecting expense 4,713 6,273 -25% 2,906 2,521 15%

General administration exp 1,812 2,075 -13% 897 743 21%

Finance cost 833 1,242 -33% 408 631 -35%

PAT 34,206 47,828 -28.5% 15,946 19,518 -18.3%

EPS (Rs) 7.95 11.12 -28.5% 3.71 4.54 -18.3%

Gross margin 56.9% 65.7% 54.4% 64.2%

Net margin 39.7% 40.3% 38.3% 36.0%

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Source: PSX Announcement