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Karachi, Oil and Gas Development Company Limited (OGDC) is anticipated to release its 1QFY24 earnings on Wednesday, projecting a Net Profit After Tax (NPAT) of PkR43.94bn. This reflects an earnings per share (EPS) of PkR10.22, marking a decrease both on a quarterly and yearly basis.
According to a news release by AKD Securities Limited, the decline in earnings for this quarter is chiefly attributed to an anomalously high finance gain in the previous quarter, resulting from the modification of a finance lease with Uch Power Ltd, amounting to +PkR75bn. Despite the anticipated drop in the bottom-line, net sales for OGDC are set to rise, estimated at PkR118bn, due to an increase in production and higher effective crude prices. Details reveal that oil and gas production witnessed a growth, with recoveries from Nashpa and inclusions from Mamikhel South compensating for the turnarounds at KPD-TAY and Chanda fields. Exploration expenses are anticipated to be at PkR4.5bn, seeing a drop due to the absence of significant dry wells. Nevertheless, ongoing exploration in Lakki Marwat and Kohat is likely to maintain higher exploration costs in the near future. Along with these earnings, a cash dividend of PkR1.75 per share is expected, consistent with the same period last year. AKD Securities recommends a ‘Buy’ stance on OGDC’s stock, targeting a price of PkR145 per share by June 2024.
PPL’s 1QFY24 Earnings Predicted to Rise; Board Meeting Today
Pakistan Petroleum Limited (PPL) is set to hold its board meeting today. The company’s earnings for 1QFY24 are projected to depict a Net Profit After Tax (NPAT) of PkR27.89bn or PkR10.25 per share, indicating an upward trend both quarterly and annually.
According to a news release by AKD Securities Limited, the growth in earnings is primarily attributed to the lack of retrospective super tax and favourable US$/PkR parity along with surging crude prices. However, the production from Mamikhel South counteracted the pronounced drops from fields like Adhi and Kandhot. The decline in these fields is ascribed to Adhi’s long-standing water incursion problems and lower gas offtakes from GTPS. The overall production for the quarter is expected to be around 8.62mn BOE. Exploration expenses for PPL are estimated at PkR2.7bn, which is on the lower side. AKD Securities has positioned a ‘Buy’ recommendation on PPL’s stock, forecasting a price of PkR125 per share by June 2024.
The post OGDC’s 1QFY24 Earnings Expected to Drop Amid One-Off Gains in Previous Quarter appeared first on Pakistan Business News.