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Karachi: The Oil and Gas Development Company (OGDC) has started the production of 120 tons per day of Liquefied Petroleum Gas (LPG) from the Kunnar Pasaki gas field, which is expected to go up to 350 tpd in a year.
According to Alfalah Securities Limited, Kunnar Pasakhi is located in Tando Jam and is 95% owned and operated by OGDC. The addition of 120 tpd of LPG would have an incremental earnings impact of PKR 0.4 per share while 350 tpd of LPG will translate into incremental earnings of ~PKR 1.2 per share for OGDC. Alfalah Securities Limited recommends a BUY on OGDC with Target Price of PKR 190.5 (upside potential: 20.9%) while trading at an attractive FY13F P/E multiple of 6.6x.