Oil and Gas Development Company (OGDC), Pakistan's largest oil and gas explorer is likely to declare Rs 10.10 Earning Per Share (EPS) for the first half of 2012 on February 23.
Talking to APP, Stock Analyst Zaheer Ahmed said that it was expected the company would show a robust earning growth of 36 per cent to Rs 10.1 per share as against Rs 7.4 per share in the same period last year because of favourable pricing scenario and improved gas production.
He said that the corporate results were expected to be accompanied by a cash dividend of Rs 1.5 per share, translating into first half payout of Rs 3 per share. In second quarter, the market was expecting the company to post an EPS of Rs 5.0 depicting an increase of 45 per cent as compared to Rs 3.5 reported in the same period last year.
Zaheer said that revenues were also expected to be increased by 12 per cent in first half of financial year of 2012. During the period under review, the OGDC's revenue is estimated to grow by 12 per cent to stand at Rs 91.2bn as against Rs 81.1bn in first half of financial year of 2011 primarily on account of higher net realised oil and gas prices. Arab Light crude price average US $108 per barrel versus US $79 per barrel in the same period last year, while Pak Rupee depreciation against the USD also played its due role.
Further impetus to growth also came from 9 per cent increase in company's gas production, while oil production is expected to decline by 1 per cent. Further impetus to profitability growth is expected to come from significant surge in company's other income and curtailed exploration expenditure.
During the period under review, other income is likely to depict a 4-fold increase to stand at Rs 4.8 billion as against Rs 960 million in the same period last year. The primary reason behind higher other income is improved cash position of the company. Company's cash and cash equivalent stood at Rs 55.2 billion as of September 30, 2011 as against Rs 21 billion one year back.