OGDC: Oil & Gas Development Company Limited, Earnings Release: Q3 March 2023
EPS: Rs. 15.03. Cash Dividend: Rs. 1.8 per share
Profit after tax of Rs. 64 billion is almost 50% of the PAT of Q3 last year, while profit before tax (PBT) is about 54% higher than the same quarter last year.
Sales of Rs. 105.9 billion for the quarter have grown by 19%, while gross profit has grown by 16.6%. Gross margin was depressed due to higher operating expenses.
Revenue was boosted due to the weakening rupee and higher oil prices. The real boost to the income came from 'other income' of Rs. 37.4 billion, which grew 4.5 times over the same period last year, due to higher investment income as interest rates rose. Other income also increased due to exchange gains coupled with share of profit in associates.
The tax rate for the quarter was 35.2%, in line with the recent historic average.
OGDC is trading at very low multiples, i.e., PE of around 2 and price to book of less than half.
The free float of OGDC is just 15%. The government of Pakistan holds 85% of the company.
OGDC holds a 20% stake in Mari Petroleum Company Limited.