(OGDC earnings grew 20%

In nine months (July-March), revenues of the company grew 13% to Rs190.36 billion, thanks to a rise of 3% and 4% in oil and gas production respectively. PHOTO: FILE

KARACHI: Oil and Gas Development Company (OGDC) on Monday announced that its earnings grew 20% at Rs90.938 billion in the first nine months of financial year 2013-14 compared to Rs75.75 billion in the same period of previous year.

Growth in earnings came on the back of increase in oil and gas production, depreciation of the rupee against the dollar by 7% on average basis and conversion of Rs138.3 billion receivables into investments, which was likely to boost other income, said Global Research while commenting on the results.

The company also announced a cash dividend of Rs2.25 per share, taking total cash payout to Rs6.25 per share so far in the current financial year.

In the third quarter (January-March) alone, OGDC’s profit stood at Rs23.71 billion, a decline of 30% compared to the previous quarter, primarily due to an increase in operating expenditure and higher effective tax rate of 40%, the research house said.

In nine months (July-March), revenues of the company grew 13% to Rs190.36 billion, thanks to a rise of 3% and 4% in oil and gas production respectively.

According to Pakistan Petroleum Information Service’s earlier data, OGDC’s oil production was likely to hit 42,000 barrels per day and gas flow could reach 1,230 million cubic feet per day in the third quarter. In nine months, operating expenditures increased 19% to Rs33.25 billion following enhanced activity in fields operated by joint ventures, Global Research said.

In the third quarter, operating expenditures rose 29% to Rs12.94 billion compared to Rs10 billion in the second quarter, which could be due to higher amortisation charge pertaining to the Manzalai field downgrade