Ismail Iqbal Securities - Oil Gas Development Co. Ltd. (OGDC) Trading at an Implied Oil Price of USD 42 Only

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Ismail Iqbal Securities

Trading at an Implied Oil Price of USD 42 Only

Oil and Gas Development Company (OGDC) posted normalized revenue growth of 7% QoQ in 3QFY18, mainly due to higher realized oil prices and devaluation of PKR against USD. Meanwhile, the company reported flat production during the quarter. The company has recently made an oil and gas discovery at Nashpa-8 well, whose exact size has not been notified but we are hopeful that the flow from it will be significant. Following the 3QFY18 result, which was mostly in line with our expectation, we have made slight adjustments to our target price. Our new December 2018 TP for the scrip is PKR 190, which provides an upside of 16% from its last day closing price, which is why we are maintaining a positive stance on it. Additionally, the company is trading at the lowest implied oil price, of USD 42/bbl only, within our coverage universe.

11/05/2018 4 EN

Underlying

Oil & Gas Development Co. Ltd.

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.

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PK0080201012 Pakistan Stock Exchange Pakistan

Provider

Ismail Iqbal Securities

Ismail Iqbal Securities (Private) Limited (IISPL) is a TREC holder of the Pakistan Stock Exchange, as well as an SECP registered Underwriter and Book Runner. IISPL provides comprehensive financial services including Equity Sales, Research on Equities and the Macro-Economy, Investment Advisory, Portfolio Management, Corporate Finance, and extensive services for Private Equity investors. IISPL services a diversified client base, from Institutional to Retail Investors including High Net worth Individuals.

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Trading at an Implied Oil Price of USD 42 Only

OGDC_FY22 Analyst Briefing Takeaways, (AKD Off the Analyst's Desk Nov 25, 2022)

Pakistan E&Ps: Unwarranted valuations despite cash-flow constraints

Oil & Gas Development: 1QFY23 Result Review

Â Oil prices up owing to production outages in the U.S Gulf of Mexico

Oil prices closed marginally up during the out going week

PSMC outperforms during March with sales up +23% YoY

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