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% |
|
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