RECORDER REPORT
KARACHI: The Oil and Gas Development Company (OGDC) has revised down its drilling target to 30 wells (earlier 45) with revised capex of Rs30-35 billion.
The OGDC Management said, they are the interested party in Mari Petroleum and in case of divestment by the government they may show interest in acquiring more share. Removal of cap on Mari dividend was also a long standing demand of OGDC.
Receivables of the company came down to Rs323 billion in December 2020 from Rs342 billion in September 2020. The decline is attributed to Uch lease adjustment which has impact of Rs13 billion. This amount is now reflected as lease receivable and current portion of lease receivable. FX loss came in higher due to recognition of Uch Lease as asset (in US$ terms) and due to PKR appreciation the company recorded FX loss on both lease amount and dollar reserves.
UCH adjustment had bottom-line impact of negative Rs1.8 billion (or negative Rs0.42/share).
OGDC recovery from Sui companies has been around 40-50 percent. In month of December 2020, the cash flows from Sui companies improved slightly.
With respect to TFC’s given to OGDC in 2013 circular debt settlement, the company has requested the government to either pay it in cash or covert it in PIBs so OGDC can market it.
Nashpa compression project was completed in November 2020 which added 2,000 barrels of Oil and 5-6mmcfd of gas. Capex incurred on this project was $15 million.
The cash balance of company declined to Rs71 billion as of December 2020 from Rs73 billion in September 2020.
During the second quarter of FY21, the company posted EPS of Rs4.4/share, down 24 percent on year-on-year basis. Net revenues declined by 15 percent on YoY to Rs55 billion on the back of fall in oil and gas production by 3-11 percent and lower oil prices by 33 percent on YoY.
Alongside the result, dividend of Rs1.6/share was declared, taking the first half of FY21 payout to Rs3.6/share (Payout ratio: 37 percent) compared to Rs4.25/share (Payout: 36 percent) in the first half of FY20, Shankar Talreja at Topline Securities said.
