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 to rest at PkR27.74bn (EPS:PkR6.45/sh) climbing 4%YoY where key catalysts are: 1) ~16.1%YoY/~7.1%QoQ decline in realized oil prices, coupled with average exchange rate pullback of -2%QoQ for the PkR vs. US$, 2) modest production declines for gas (-3%YoY) and oil (-7%YoY) keeping production stable, while LPG production also moderated, and 3) slightly elevated below the line exploration and admin expenses are forecasted, where treatment of two dry wells (in Nashpa and Khewari blocks) remain below 4QFY19’s expense booked over failed offshore exercise. Other income is expected at PkR1.12/sh (after tax on investment income) clearly aiding in the expected accompanying payout of PkR2.75/sh.
PSMC - Forgettable CY20 continues with 3Q results: 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). Cumulative 2%YoY rise in net sales for 9MCY19 (~12%QoQ decline in 3QCY19 sales) are underpinned by 15.4%YoY dip in unit sales during the period, where sales price hikes are the key driver for growth, where cost inflation remains drastic, leading profitability on a depreciative path (GM to recede to 3.2%). Spiked finance costs keeps the bottom line in check (expected at PkR340mn for 3QCY19, crossing PkR1bn for 9MCY19), while the company’s expansive CAPEX outlay makes the case for a payout completely void.
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.