Oil & Gas Development (OGDC): 1QFY21 EPS at Rs5.45, up 43% QoQ (higher than industry consensus)
- OGDC has posted 1QFY21 earnings of Rs23,427mn (EPS: Rs5.45), an increase of 43% QoQ. The earnings came in higher than our estimate of Rs4.7/share.
- Along with the result, company also declared a cash dividend of Rs2.0/share.
- Deviation in our earnings stems from higher than expected sales of Rs59.5bn, up 28% QoQ (vs. our estimates of Rs55.8bn) and lower than expected OPEX of Rs17.3bn (vs. our estimate of Rs19.1bn).
- One of the reasons behind deviation in sales could be higher weighted average price of imported crude oil (which is used as benchmark price for wellhead gas price calculation) than the average of Arab Light oil prices between Dec-2019 to May-2020.
- Exploration costs fell by 25% YoY to Rs3bn despite the fact that PPIS reported three dry wells in the outgoing quarter vs. two in the corresponding period last year.
- Other income fell by 35% QoQ due to incurrence of exchange losses as PKR appreciated against the USD by Rs2.45 during 1QFY21.
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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