On September 23, 2024, the Board of Directors of Oil and Gas Development Company Limited (OGDCL) met in Islamabad to approve the company’s financial results for the fiscal year ended June 30, 2024. The meeting culminated in the declaration of a final cash dividend, significant financial milestones, and the company’s overall performance.
Dividend Announcement
The Board recommended a final cash dividend of Rs. 4.00 per share, translating to 40% of the paid-up capital. This final dividend is in addition to the interim dividend of Rs. 6.10 per share, representing 61%, already paid during the year. The total cash dividend for the year reflects the company’s strong financial performance and commitment to shareholders.
Key Financial Highlights
Sales Revenue: The company recorded total net sales of Rs. 463.7 billion for the year, a notable increase from Rs. 413.6 billion in the previous year (2023). This reflects a steady increase in operational efficiency and market demand.
Gross Profit: OGDCL reported a gross profit of Rs. 283.3 billion for 2024, an increase from the Rs. 269.7 billion recorded in 2023. This improvement came despite increased operating expenses, royalties, and transportation charges.
Operating Expenses: Operating expenses for the year increased significantly, amounting to Rs. 123.5 billion, up from Rs. 93.6 billion in 2023. Royalty payments also increased, from Rs. 48.4 billion in 2023 to Rs. 54.3 billion in 2024. Transportation charges, though marginally lower, contributed Rs. 2.6 billion compared to Rs. 1.86 billion the previous year.
Profit Before Taxation: OGDCL reported a profit before taxation of Rs. 293.8 billion, a decline from the Rs. 383.8 billion recorded in the previous fiscal year. This decrease can be attributed to higher exploration, administration, and finance costs.
Taxation and Profit for the Year: The company faced a substantial tax liability of Rs. 84.8 billion, down from Rs. 159.2 billion in 2023. The overall profit for the year stood at Rs. 208.98 billion, slightly lower than the Rs. 224.6 billion profit recorded in 2023. Despite this, the company maintained robust profitability.
Earnings Per Share (EPS): Earnings per share for the fiscal year 2024 amounted to Rs. 48.59, compared to Rs. 52.23 in the previous year. The dip in EPS reflects the increased cost structure and reduced overall profits, yet the company’s financial performance remained solid.
Conclusion
Oil and Gas Development Company Limited has demonstrated resilience in a challenging operational environment, achieving solid financial results for the fiscal year ended June 30, 2024. The company’s ability to maintain profitability, increase gross sales, and return value to shareholders through dividends marks a successful year. With strategic focus and continued investment in exploration and operational efficiency, OGDCL is positioned for long-term growth in the oil and gas sector.