OGDC :Earnings and institutional shareholding remain on track
- The domestic E&P behemoth has had undergone wild swings this year, with the stock price swayed by developments surrounding Kekra-1 offshore well, foreign institutional selling and a cloudy oil price outlook driving sentiments in an increasingly fluid manner
- Recent developments surrounding the GoP’s bid to privatize ~7% holding in the firm bring to the fore the recent round of institutional selling in the stock, which an analysis of historic shareholding patterns reveals are not as unruly as previously though, where the top fifteen shareholders have maintained their share in ownership with foreign funds mostly absorbing major selling
- OGDC is slated to report FY19 NPAT of PkR113.77bn (EPS: PkR26.45/sh) marking a rise of 44.5%YoY with 4QFY19 earnings of PkR28.45bn (EPS:PkR6.62/sh) an increase of 30%YoY while remaining flat QoQ, on the back of value accretive macro factors and other income growth. In addition to the results, final year payout of PkR3.0/sh is expected, taking full year payout to PkR11.5/sh.
- Citing strong earnings growth, attached with resilient payouts and institutional shareholding remaining firm, we believe these trends bode well for easing investor concerns over flow absorption, confirmed by Our TP of PkR215/sh implying a Buy stance.
AKD Research
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.