The Oil & Gas Development Company Limited (OGDCL) has declared its income at Rs 46 billion, and earning per share (EPS) Rs 10.69 in FY06 against Rs 33 billion (EPS Rs 7.67) in FY05, depicting a growth of 39 percent.
The company declared a final cash dividend of Rs 3.75 per share taking the cumulative payout to Rs 9.00 per share for FY06. The OGDCL declared its annual FY06 result here on Tuesday and according to analysts the result was inline with the expectation.
Faraz Farooq, an analyst at Jahangir Siddiqui Capital Markets, said that with combined oil & gas production in FY06 showed a nominal increase of 4 percent, growth in earnings mainly derived from higher oil & gas prices.
The company derives about 40 percent of its income from oil sales. Saudi Light oil prices averaged $59/barrel in FY06, which is 43 percent higher than last year''s average oil price.
The average wellhead price of Qadirpur Field (accounting for 39 percent of total gas production) surged by 37 percent to Rs 201.4.Due to this, net sales of the company grew by 31 percent and reached Rs 96.7 billion. Other income of the company, which mainly includes interest income, depicted massive increase in FY06 by virtue of its holding of huge cash balances (Rs 38 billion as of March 2006) in the wake of rising interest rates scenario.