Inside Financial Markets

OGDC Result Key Highlights:Analyst View

OGDC Result Key Highlights:

  • OGDC posted 1QFY14 net earnings of PRs7.81/sh and DPS of PRs2. Earnings came in well above ours as well as street expectation. The reason for the deviation from our estimates is higher other income, 9% lower than expected operating expenses and lower effective tax rate.
  • Sales increased by 16% YoY on the back of Pak rupee devaluation of 9%, increase in Oil & Gas production where our estimate suggest Oil & Gas productions stands at 42kbpd and 1350mmcfd.
  • Other income increased by 183% as company book interest income on energy TFC and PIB. As per our calculation, the break-up of other income is PRs5.1bn from TFC & PIB Interest income, PRs2.0bn exchange gain on US$ TDR and the remaining is interest income on bank balances & other items.
  • Effective tax rate of company stands at 27% against our estimate of 32%

§        We reiterate our Buy call on OGDC with PO of PRs283. FY14E EPS PRs. 30.29

 

 

 

1QFY14A

1QFY13A

YoY

4QFY13A

QoQ

 Revenues

62,416

53,795

16.0%

54,275

15.0%

 Operating Exp.

11,677

9,860

18.4%

10,958

6.6%

 Royalty

7,125

6,256

13.9%

6,733

5.8%

 Sub total

18,802

16,117

16.7%

17,691

6.3%

 Explroation cost

1,955

1,461

33.7%

6,030

-67.6%

 WPPF

2,424

1,917

26.5%

1,744

39.0%

 Other Income

7,447

2,632

183.0%

4,998

49.0%

 PBT

44,368

36,414

21.8%

33,129

33.9%

 PAT

33,588

25,656

30.9%

15,106

122.4%

 EPS

7.81

5.97

30.9%

3.51

122.4%

 DPS

2.00

1.75

2.75

Royalty

11.4%

11.6%

 

12.4%

 
tax rate + royalty

28.2%

28.3%

 

40.6%

 
tax rate

27.1%

29.5%

54.4%

 

Sanie Khan

Sanie Khan holds a deep knowledge of the financial markets in Pakistan. Based in Karachi, he has over 20 years of hands-on management experience in financial technologies and managing operations in the financial sector. He was the General Manager at the Pakistan Stock Exchange (PSX) for 17 years. He along-with senior members of Exchange

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