Oil & Gas Development

Oil and Gas Development Company is a petroleum exploration and production (E&P) company in the Pakistan oil and gas sector. Co.'s principal activity is to explore, develop, produce and sell oil and gas resources and related activities. Co. also manufactures Gas, Liquefied Petroleum Gas, Crude Oil, and Sulphur. Co.'s major fields contributing in the aforesaid production of crude oil include Nashpa, Kunnar/KPD, Pasakhi, Sinjhoro and Rajian and for gas include Qadirpur, Uch, KPD, Nashpa and Dakhni. Co. carries out exploration and development activities on its own as well as in joint ventures with other oil companies.
  • TickerOGDC
  • ISINPK0080201012
  • ExchangePakistan Stock Exchange
  • SectorOil & Gas Producers
  • CountryPakistan
Ali Asghar Poonawala

OGDC_All hands on deck, (AKD Daily, Jul 06, 2020

AKD Daily OGDC:All hands on deck News reports highlighting the commencement of production from wells Dhok Hussain and Togh (both in Kohat district) bring the largest domestic E&P firm (50/28% of domestic oil/gas production) back into the limelight, where we re-iterate core catalysts driving our ‘BUY’ call on the stock (TP of 172.2/sh). Our forward earnings estimates are underpinned by FY21/22 Arab Light Price estimate of US$40bbl and US$ appreciation of 4.5/4.5% against the PkR, where the fall in market capitalization (down ~18%YoY) extended deviations to crude oil fundamentals with the s...

Muhammad Saad Ali

Pakistan E&Ps: MOL makes another discovery in Tal block

According to a PSX notice by Pakistan Oilfields Ltd (POL), MOL has made another discovery in Tal block, Mamikhel South-01, which is the first successful exploratory well in Tal since Makori Deep in June 2016. Oil & Gas Development Co. (OGDC) and Pakistan Petroleum Ltd (PPL) both have c28% stake in the block, while POL has c21% stake. MOL is the operator with c8% stake. This is the 10th discovery in Tal block – the first discovery was made in December 2002 (Manzalai). The well was spud in Octo...

Muhammad Saad Ali

Pakistan's KSE-100 in May: Muted performance despite positive triggers

The KSE-100 was flat in May 2020 (down 0.5% mom), taking CY20td decline to 17%. There were some positive triggers, including the partial lifting of lockdown conditions by the government and the SBP cutting the policy rate further by 100bps to 8%. However, both failed to lift market sentiment. Market activity fell 9% mom to c.US$46mn average daily traded value. FIPI outflow (US$40mn in May) continued for the fourth consecutive month since the onset of Covid-19 pandemic. International oil price...

Muhammad Saad Ali ...
  • Yusra Beg

Pakistan Market: KSE-100 – Staging a bounce back

The KSE-100 bounced back in April 2020, rising 17% mom, after a sharp 23% decline in March. The rally was led by (i) government decision to ease off lockdown conditions for certain industries, (ii) an emergency 200bps cut in the policy rate, bringing it to 9.0%, and (iii) a massive 62% slump yoy in global oil prices. MSCI World / EM indices were up 11.0%/ 9.0% mom. Market activity, however, came down by 11% mom to US$50mn average daily traded value. Foreign selling narrowed to US$69mn (vs US$...

Muhammad Saad Ali

Oil & Gas Development: 3QFY20 Review: Lower exploration expenses & large exchange gains

Oil & Gas Development Ltd (OGDC) has posted 3QFY20 NPAT of PKR30.5bn (EPS PKR7.08), up 7% yoy and 18% qoq. This takes 9MFY20 earnings to PKR83.6bn (EPS PKR19.45), down 2% yoy. OGDC skipped the interim dividend for the first time since 2QFY11. Key Highlights for 3QFY20 Net Sales fell 3% qoq (flat yoy) to PKR65.0bn, with a 3% qoq pickup in gas production to 876mmcfd and a 4% qoq decline in crude oil output to 36,600bpd. The decline in oil sales is largely due to Nashpa and Tal block which were ...

Ali Asghar Poonawala

OGDC_All hands on deck, (AKD Daily, Jul 06, 2020

AKD Daily OGDC:All hands on deck News reports highlighting the commencement of production from wells Dhok Hussain and Togh (both in Kohat district) bring the largest domestic E&P firm (50/28% of domestic oil/gas production) back into the limelight, where we re-iterate core catalysts driving our ‘BUY’ call on the stock (TP of 172.2/sh). Our forward earnings estimates are underpinned by FY21/22 Arab Light Price estimate of US$40bbl and US$ appreciation of 4.5/4.5% against the PkR, where the fall in market capitalization (down ~18%YoY) extended deviations to crude oil fundamentals with the s...

Muhammad Saad Ali

Pakistan E&Ps: MOL makes another discovery in Tal block

According to a PSX notice by Pakistan Oilfields Ltd (POL), MOL has made another discovery in Tal block, Mamikhel South-01, which is the first successful exploratory well in Tal since Makori Deep in June 2016. Oil & Gas Development Co. (OGDC) and Pakistan Petroleum Ltd (PPL) both have c28% stake in the block, while POL has c21% stake. MOL is the operator with c8% stake. This is the 10th discovery in Tal block – the first discovery was made in December 2002 (Manzalai). The well was spud in Octo...

Muhammad Saad Ali ...
  • Yusra Beg

Pakistan Market: KSE-100 – Staging a bounce back

The KSE-100 bounced back in April 2020, rising 17% mom, after a sharp 23% decline in March. The rally was led by (i) government decision to ease off lockdown conditions for certain industries, (ii) an emergency 200bps cut in the policy rate, bringing it to 9.0%, and (iii) a massive 62% slump yoy in global oil prices. MSCI World / EM indices were up 11.0%/ 9.0% mom. Market activity, however, came down by 11% mom to US$50mn average daily traded value. Foreign selling narrowed to US$69mn (vs US$...

Muhammad Saad Ali

Oil & Gas Development: 3QFY20 Review: Lower exploration expenses & large exchange gains

Oil & Gas Development Ltd (OGDC) has posted 3QFY20 NPAT of PKR30.5bn (EPS PKR7.08), up 7% yoy and 18% qoq. This takes 9MFY20 earnings to PKR83.6bn (EPS PKR19.45), down 2% yoy. OGDC skipped the interim dividend for the first time since 2QFY11. Key Highlights for 3QFY20 Net Sales fell 3% qoq (flat yoy) to PKR65.0bn, with a 3% qoq pickup in gas production to 876mmcfd and a 4% qoq decline in crude oil output to 36,600bpd. The decline in oil sales is largely due to Nashpa and Tal block which were ...

Muhammad Saad Ali

Pakistan Market: A month like no other – KSE-100 fell 23% in March

* The KSE-100 lost nearly a quarter of its market cap, falling 23% in March 2020 (worst month since the 2008-09 crisis). The unprecedented pessimism was led by the unabated spread of coronavirus globally – where the MSCI World/EM indices were down 13%/17% mom – along with a countrywide lockdown in Pakistan. A 225bps cut in interest rates by the SBP could not appease the market sentiment. * Market activity, however, rose sharply by 37% mom to US$56mn average daily traded value. FIPI outflow ...

Muhammad Saad Ali

Pakistan's KSE-100 in May: Muted performance despite positive triggers

The KSE-100 was flat in May 2020 (down 0.5% mom), taking CY20td decline to 17%. There were some positive triggers, including the partial lifting of lockdown conditions by the government and the SBP cutting the policy rate further by 100bps to 8%. However, both failed to lift market sentiment. Market activity fell 9% mom to c.US$46mn average daily traded value. FIPI outflow (US$40mn in May) continued for the fourth consecutive month since the onset of Covid-19 pandemic. International oil price...

Team AKD Research

AKD STOCK SMART, Nov 08, 2019

Index continued the momentum gained towards the end of last week and started the week on a strong footing, increasing by ~900 points in first trading session, supported by declining yields in the PIB auction held last week while additional stimulus was provided by easing tensions on the political front between government and opposition. Moreover, encouraging numbers clocked in for external account which provided further support. The enthusiasm based on aforesaid factors was carried for the whole week as index closed all 5 trading days of the week in green. KSE-100 closed the week at 35,978pts,...

Ali Asghar Poonawala

OGDC & PSMC: Result Previews,(AKD Daily, Oct 25, 2019)

For OGDC we expect modest NPAT growth of 4%YoY (EPS: PkR6.45) on the back of lacklustre production and stability in realized oil/gas prices, while production and exploration expenses remain relatively firm. Accompanying payout of PkR2.75/sh is aided by other income. PSMC is slated to release 3QCY19 earnings today where we expect them to post LPAT of PkR613.1mn (LPS:PkR7.45/sh.) recording a slide of 10%YoY, taking cumulative 9MCY19 LPAT to PkR2.14bn (LPS:25.99/sh). OGDC- Growth only from macro externalities: OGDCL reports 1QFY20 results today (25th Oct’19) where we expect cumulative NPAT ...

Muhammad Saad Ali ...
  • Raza Jafri

Pakistan (IMS): Mid-Year Strategy – towards a better H2 19

• The IMF Executive Board approved Pakistan’s three-year US$6bn EFF programme. If successful, the programme can lead to more equitable growth for Pakistan . • We are encouraged by Pakistan’s new-look macroeconomic policy making, which is now coherent and better coordinated. • Low investor confidence led the KSE-100 to hit its 2019td low earlier in the week. Confidence should now improve.

Oil and Gas Development Company (OGDC): Relatively Cheap & One of the Safest Wildcats; Reiterate Buy

Investment thesis: We reiterate our ‘Buy’ call on OGDC, Pakistan’s largest oil & gas Exploration & Production (E&P) company that meets 29% of the Country’s existing oil & gas production. Our investment thesis is underpinned by its 1) 2p reserves based valuation of Rs183, providing 29% upside (including dividend) from current levels  & 27% discount (implied oil price) to existing Arab Light Crude oil price of US$62/bbl, 2) additional hydrocarbon flows that will arrest natural depletion and 3) on-going offshore drilling that can possibly be a game changer for the company. Attractive valuation: ...

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Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

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