Corporate results: OGDC profit jumps 31% to Rs33.5 billion

State-run OGDC, which is Pakistan’s largest petroleum producer, also benefited from depreciation of rupee as most of the wellhead gas prices were benchmarked with the US dollar, analysts said. PHOTO: FILE

KARACHI: Oil and Gas Development Company (OGDC) on Friday announced a 30.9% rise in profit for the first quarter of current fiscal year 2013-14 on the back of higher production and better petroleum prices.

Profit for the July-September quarter soared to Rs33.59 billion from Rs25.655 billion in the same period of previous year, a better result than what most analysts had predicted. The company announced a cash dividend of Rs2 for the quarter.

State-run OGDC, which is Pakistan’s largest petroleum producer, also benefited from depreciation of rupee as most of the wellhead gas prices were benchmarked with the US dollar, analysts said.

Another major boost to profit came from other income, which rose 184% to Rs7.425 billion. Most of this increased income came from interest earnings on Pakistan Investment Bonds, which the government had issued to settle inter-corporate circular debt.

OGDC’s exploration expense jumped 34% to Rs1.95 billion, but some analysts said it was below what had been expected. Petroleum explorers are under increasing pressure to ramp up production as gas shortages have hampered industrial and commercial activity.

With a market capitalisation of more than $10 billion, OGDC is also the largest listed company. Its share price rose 2.8% to close at Rs261.36 at the Karachi Stock Exchange.

The company accounts for 54% and 26% of oil and gas production respectively. It is developing fields, which hold substantial potential, including Kunnar Pasakhi Deep, Sinjhoro and Uch fields. OGDC is also on the list of companies, which the government intends to privatise.