OGDCL - 1HFY23 Analyst Briefing Takeaways, (AKD Off the Analyst's Desk Feb 23, 2023)
AKD, Off the Analyst's Desk
OGDCL - 1HFY23 Analyst Briefing Takeaways
OGDCL held its conference call earlier today to discuss the financial performance for the 1HFY23 period. The highlights of the call are as follows:
- Net sales during the half year clocked in at PkR203bn (up 34%YoY) majorly due to higher oil and gas prices during the period. To note, average realized prices for crude oil stood at US$78.6/bbl (up 24%YoY), while realized natural gas stood at PkR570 (up 41%YoY). Production activity during the half year stood as follows: 33,061bpd of crude oil, 772MMcfd of natural gas and 730 TPD of LPG, respectively.
- Company operated in 49 Exploration Blocks (23 blocks with full ownership and 26 blocks as operated JVs), covering an area of 89.4k sq. km as at Dec-22. On the drilling front, company spud total of 4 wells (vs. 6 last year) with three being exploratory wells and one development well.
- Production output was impacted due to natural declines in fields including KPD-3, Bobi, Chanda, Mela, Bitrism and Nashpa fields alongside production curtailments due to torrential rains/floods, resulting in output loss of 810bpd of crude oil and 35mmcfd of natural gas, respectively.
- With regards to development projects, three compression pumps are in the future pipeline, namely: Dhakni compression (expected COD April’2024), KPD-TAY compression (expected COD Sept-2024), Uch compression (expected COD July-2024). Total outlay for the three projects stand at US$125mn, with cumulative capacity once completion is achieved will be 722mmcfd.
- Operating expenses during the first half were up by 14%, majorly on account of one off charges i.e. professional services regarding Reko Diq project, technical studies and fire damage in TAL block during Nov’22 which set back the company approximately PkR1bn.
- With regards to Nashpa field’s production decline, company does not expect any major change in the output for the rest of the year. With regards to capex, company is looking to venture into several new development/exploratory wells, although Uch compression project will still remain as a major capex during the year.
- With regards to Mamikhel South’s (TAL block) gas sale to third party, company expects production from the field to start by 4QFY23. To note, field has a gas flow of 20mmcfd and condensate flow of 4300bpd, with OGDCL’s share in the field standing at 27.76%.
- Wali-1’s (Wali Block) production is expected to start by 4QFY23 while Bannu West-1 (Bannu West block) will take further time and is expected to materialize by next year.
- With regards to ADNOC Offshore block-5 (UAE), company is still in the process of evaluating and finalizing the data. With regards to Zin field, company is in discussion with the regulator regarding its development, although security situation of the site is hampering the company’s efforts.
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.
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.