OGDC Profit Falls 7% to Rs. 208.9 Billion in FY24 

The Oil & Gas Development Company Limited (PSX: OGDC) has announced a profit after tax (PAT) of Rs. 208.9 billion (EPS: Rs. 48.59) in the fiscal year ended June 30, 2024.  The company’s PAT for the period under review is down by around 7 percent compared to a PAT of Rs. 224.6 billion posted in the previous fiscal year (FY23).  During 4QFY24, the company’s profitability declined by 42 percent year-on-year (YoY) to Rs. 37.8 billion (EPS: Rs. 8.81). Alongside the result, the company announced a final cash dividend of Rs.4 .00 per share (Rs. 10.10 per share in FY24).  Topline in FY24 climbed up by 12 percent YoY, clocking in at RS. 463,698 million compared to Rs. 413,594 million in the same period of the previous year due to 2 percent YoY increase in oil production and the depreciation of Pakistani rupee against the US dollar by 12 percent YoY.   During 4QFY24, the net sales increased by 11 percent YoY to Rs. 115,534 million due to a 5 percent YoY jump in oil production and a 9 percent YoY hike in oil prices.   The exploration costs declined by 34 percent YoY to Rs. 12,561 million in FY24. Whereas the exploration costs during 4QFY24 fell by 50 percent YoY, on account of the lower cost of dry well Badhra Dir-16 compared to dry well Chak 20-01 in SPLY.  Other income clocked in at Rs. 41,344 million in FY24, down 73 percent YoY. Whereas the company recorded other expense of Rs. 3,197 million in 4QFY24 compared to other income of Rs. 89,508 million in SPLY, due to exchange loss on Pakistani Rupee appreciation and the one-off gain on modification of finance lease of Uch Power Limited I in 4QFY23.   The company booked effective taxation at 30 percent in 4QFY24 compared to 50 percent in 4QFY23.  *Story based on Arif Habib Limited’s result review of the company.