The Oil and Gas Development Company (OGDC) reported a decrease of 9.3% in its profit-taking it to Rs91.5 billion in the fiscal year (FY21) in comparison to a profit of Rs100.9 billion reported in the previous year.

The company submitted a notice with the Pakistan Stock Exchange (PSX) on Tuesday. According to the note, OGDC recorded a decline in earnings per share from Rs23.47 in FY20 to Rs21.28 in the current year.

OGDC announced a final cash dividend of Rs1.5/share leading to the total dividend during FY21 to Rs6.9/share.

Net sales of the company rose from Rs232.9 billion in the previous year to Rs239.1 billion during the current fiscal year. This marks an uptick of 2.65%.

Analyst at Arif Habib Limited Muhammad Iqbal Jawaid said “The growth in sales comes on the back of hike in oil prices by 3% on a year-on-year basis and increase in oil production by 2% given resurgence in global demand,”.

The operating expenses saw an increase of 7.42% taking it from Rs65.3 billion to Rs70.2 billion this year. The transportation charges also increased by 10%, from Rs1.59 billion in FY20 to Rs1.76 billion in the year under review.

The exploration cost on the other hand fell 5% taking the figure from Rs18.2 billion to Rs17.3 billion.

Finance cost was reported at Rs2.2 billion in FY21 against Rs3 billion in FY20. Finance and other income plunged 60% to Rs14 billion in comparison to Rs33.8 billion last year.

Iqbal explained that “Other income plunged due to fall in interest income from cash and cash balances,”.

General and administrative expenses also fell from Rs5 billion to Rs4.7 billion in FY21.

The share price of the oil company saw a drop of Rs1.23 leading to a close at Rs83.39 with 7.35 million shares changing hands at the PSX.

The story was filed by the News Desk.
The Desk can be reached at info@thecorrespondent.com.pk.

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