Flash Note: Oil & Gas Development (OGDC): FY18 Conference Call Notes
- Ultra deep water offshore well has been approved and rig has been arranged, to be started from Jan 2019. It will take about 4-5 years to develop.
- Tal block pricing case is ongoing in the court and the new Govt. is willing to discuss all existing issues and they are planning to encourage more investment into the Country. The issue is expected to be settled in FY19.
- Stagnant growth in gas production is a challenge. In the next two years OGDC should be able to come up with 150mmcd of gas. With natural depletion and incremental gas production, the company will be able to sustain its gas production at current levels going forward.
- Overall receivables due to circular debt have increased but at the same time, cash position of the company has strengthened. The new Govt. is preparing plans to resolve the issue of circular debt. There is a commitment from the Govt. to reduce the circular debt substantially.
- Following fields are in pipeline: Dhok Hussain Development with 20mmcfd gas and 400bpd oil (expected completion Oct 2018), Mela Development with LPG 35tons per day and 10mmcfd gas (expected completion Jun 2019), Nashpa Compression with 10mmcfd gas and 1,120 bpd oil (expected completion Dec 2019), Jhal Magsi Development with 15mmcfd (expected completion Dec 2019).
- During the year, OGDC contributed 29% of Pakistan's natural gas production, and 47% of its oil production.
- The company's net realized price for oil averaged US$54.56/bbl, up 24% Yo while that of gas stood at Rs259/mmcf, up 8% YoY.
- OGDC had average oil production of 41,278 during FY18, down ~6% YoY while gas production remained flat at average 1,022mmcfd.
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.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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