OGDC_PPL & ASTL_1QFY18 Result Previews
OGDC: 1QFY18 Result Preview
The BoD of OGDC is scheduled to meet tomorrow, Oct 25'17 to announce its 1QFY18 results. We expect the company to announce a net profit of PkR17.7bn (EPS: PkR4.12) vs. PkR14.6bn (EPS: PkR3.40) in 1QFY17. Jump in profitability of 21%YoY is mainly attributable to incremental oil production (up 8.9%YoY), and higher intl. oil prices (up 17%YoY). Operating expenses are expected to shoot 9.3%YoY to PkR14.3bn as the company expended efforts to beef up production from its old wells (Nashpa, Qadirpur etc). Seismic data acquisition continued but lack of dry wells shall keep exploration expense on the lower side. As the company received matured PIB funds earlier in Jul'17, other income is anticipated to drop significantly as we expect the company to temporarily deposit funds in low-yield TDRs. Along with the result, we expect the company to announce a dividend of PkR1.25/sh, in-line with its payout policy. Lastly, we do highlight that although the company has received notification on account of revised field prices (in TAL block), we believe the company shall book the incremental income (~PkR0.38/sh) in 2QFY18. We currently have a BUY stance on the company with a NAV based TP of PkR190/sh.
PPL: 1QFY18 Result Preview
PPL announces its 1QFY18 result on Friday, Oct 27'17, where we anticipate the company to announce a profit of PkR12.2bn (EPS: PkR6.21), up 113%YoY. We highlight that this incorporates the impact of re-pricing of TAL block fields (~PkR1.27/sh) as notified by the company during the previous week. Moreover, workovers in Adhi field resulting in enhanced production during the quarter (~2.6BCF against 1.7BCF in 1QFY17), and notified Sui re-pricing (now linked to PP12) provided major support to the earnings. Although the company isn't expected to book any dry wells during the quarter, expenses on account of exploratory drilling in Balochistan and seismic data acquisition in other blocks elsewhere can potentially elevate field expenses by 28%YoY to PkR11.2bn. As with OGDC, the PPL also received matured PIB funds which would yield lower other income during the quarter. With a NAV based TP of PkR205/sh, the scrip provides a potential upside of 15.8% from last close.
ASTL: 1QFY18 Result Preview
ASTL is scheduled to announce its 1QFY18 results on Thursday (Oct 26'17) where we expect the company to post earnings of PkR265mn (EPS: PkR0.89), an increase of 17%YoY. The growth in earnings is expected to arise from: 1) 5%YoY growth in topline on the back of higher re-bars prices (+21%YoY) and 2) margin expansion of 4.62ppts likely to emerge from widening gap between scrap and re-bars prices. Sequentially, 1QFY18 earnings are expected to remain flattish registering nominal uptick of 4%QoQ, though remaining 17%QoQ lower on a tax adjusted basis due to margin contraction (-4.11ptsQoQ). Being ahead of its competitors, ASTL's expansion is expected to achieve COD by Feb'18. With clarity over expansion II along with improving fundamentals (5yr earnings CAGR of 15%), we have a buy stance on scrip with our DCF based TP of PkR134/sh, offering 39% upside. Buy!
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.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.