OGDC - Higher finance income propels bottom line, (AKD Off the Analyst's Desk Sep 28, 2023)
AKD, Off the Analyst's Desk
OGDC - Higher finance income propels bottom line
Oil & Gas Development Company Ltd (OGDC) reported its 4QFY23 earnings earlier today, wherein the company posted Profit After Tax (PAT) of PkR64.85bn (EPS: PkR15.1) for the quarter, higher by 0.4%/2.0x QoQ/YoY—significantly higher than our estimate of PkR7.15/sh for the quarter.
- The said increase in bottom line is largely due to higher finance income, clocking in at PkR89.bn (up 140%/427% QoQ/YoY). This sharp ascent may possibly be due to late payment surcharges charged on intercorporate circular debt arrears. However, additional clarification is needed to ascertain the exact cause of this surge.
- On the topline front, revenues stood at PkR104.4bn, changing by –1.4%/+10% QoQ/YoY, as oil and gas production changed by -5.6%/+4.6%QoQ during the period.
- On the opex front, expenses clocked in at PkR34.5bn during the quarter, higher by 65%/21% QoQ/YoY. This may possibly due to an overall depreciating domestic currency and employee remuneration adjustments .
- Exploration expenses clocked in at PkR8.25bn (up 94%QoQ), taking total exploration expenses for the full year PkR19bn (up 22%YoY).
- Along with the result, company also announced a final cash dividend of PkR2.75/sh, taking total payout during the full year to PkR8.55/sh.
AKD Research
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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