Oil and Gas Development Company Limited (PSX: OGDC) announced its financial result today, posting profit after tax of Rs. 171.1 billion (EPS: RS. 39.78) during 9MFY24, an increase of 7 percent over profit after tax of Rs. 159,64 billion reported in the same period of FY23.

The growth in net profit is attributable to the reversal of tax provisions worth Rs. 28.2 billion in 2QFY24 (which is due to a favorable judgment from the court, related to depletion allowance), Arif Habib Limited said in its result review.

On a quarterly basis, the company’s profitability stood at Rs. 47.8 billion (EPS: RS. 11.12), down by 26 percent over the previous year. Alongside the result, the company announced a cash dividend of Rs. 2.00 per share (Rs. 6.10 per share in 9MFY24).

Topline in 9MFY24 rose by 13 percent YoY to Rs. 348.16 billion compared to Rs. 309,15 billion in same period of FY23 owing to i) A 2 percent YoY increase in oil production, and ii) Depreciation of the Pakistani rupee against the US dollar by 17 percent Y
oY.

During 3QFY24, the net sales increase by 6 percent YoY, settling at Rs. 112.8 billion, amid i) A 5percent YoY jump in oil production, and ii) A 1 percent YoY uptick in oil prices.

The exploration costs declined by 22 percent YoY to Rs. 8.5 billion in 9MFY24. Whereas, the exploration costs during 3QFY24 fell by 18 percent YoY, on account of the absence of a dry well during the quarter compared to one dry well (Bhamabra-2) reported in SPLY.

Other income clocked in at Rs. 44.54 billion in 9MFY24, down by 32 percent YoY. Whereas, other income during 3QFY24 arrived at Rs. 17.3 billion, down 54 percent YoY due to the absence of exchange gains during the quarter (-Rs. 27.7 billion worth of exchange gains recorded in 3QFY23).

The company booked effective taxation at 41 percent in 3QFY24 compared to 35 percent in 3QFY23.

Source: Pro Pakistani