III Islamabad, August 05, 2014 for IMMEDIATE RELEASE OGDCL
Total Page:16
File Type:pdf, Size:1020Kb
Annex - III Islamabad, August 05, 2014 FOR IMMEDIATE RELEASE OGDCL Audited Financial Results for the Full Year Ended 30 June 2014 Oil and Gas Development Company Limited (OGDCL), (Ticker: OGDC), today announces its financial results for the Full Year ended 30 June 2014. Financial Statements have been prepared in accordance with International Financial Reporting Standards. Highlights of the Full Year include: OGDCL’s net sales increased to Rs 257.014 billion compared to Rs 223.365 billion in the last year Net profit before taxation increased to Rs 172.350 billion compared to Rs 146.809 billion in the last year Net Profit after Taxation increased to Rs 123.915 billion as against Rs 91.273 billion in the preceding year translating into Earnings per Share of Rs 28.81 The Board of Directors declared final cash dividend for the year at Rs 3.0 per share. Operating profit margin and net profit margin were 60% and 48%, respectively. Average net realized price of crude oil sold was US$ 87.71/bbl as against US$ 83.40/bbl during last year Average net realized price for natural gas sold was Rs 282.95/Mcf as against Rs 265.88/Mcf during last year 1,807 Line Kms of 2D and 867 Sq. Kms of 3D seismic acquisition completed Seventeen (17) new wells including eight (8) exploratory/appraisal wells and nine (9) development wells were spudded during the year ended 30 June 2014 Company’s exploratory efforts yielded two (2) new oil and gas discoveries namely Saand-1 and Maru East-1, both located in Sindh province. Net crude oil production of 41,330 barrels per day, net gas production of 1,173 MMcf per day, net LPG production 179 M.Tons per day and net Sulphur production of 93 M.Tons per day was witnessed during the period under review FY 2012-13 FY 2013-14 % Rupees ‘000 Rupees ‘000 Change Net Sales 223,365,490 257,014,254 15.1 Profit before Taxation 146,808,506 172,349,905 17.4 Profit after Taxation 91,272,619 123,914,550 35.8 Earnings per Share - Rs 21.22 28.81 35.8 1 MD & CEO’s Statement Mr. Muhammad Rafi, MD & CEO, while commenting on OGDCL’s full year FY2013-14 results stated: “I am very pleased to state that during the year under review, OGDCL continued to deliver robust financial results coupled with steady operational performance while successfully maintaining its position as the leading performer in E&P sector in terms of oil & gas reserves, production and exploration acreage in the Country. During our fiscal year 2013-14, OGDCL recorded improvement in its production volumes, reaching an average daily net crude oil and gas production of 41,330 barrels and 1,173 MMcf, respectively. During the year under review, OGDCL registered record Sales Revenue and Profit after Taxation of Rs 257.014 billion and Rs 123.915 billion, respectively which translated into Earnings per Share (EPS) of Rs 28.81. OGDCL was also successful on the exploration front where it realized two (02) new finds of hydrocarbon namely Saand-1 and Maru East-1. Our exploration-led growth strategy is based on building a balanced resource portfolio that includes a diversified mix of high- impact exploration, near-term development projects and material production growth. In the end, I take pride in informing you that the superior performance of the Company would not have been possible without the hard work, dedication and commitment of our human resource pool. Let me conclude by saying that the Company is well set on its carefully chartered path of continuous growth and long-term success in years to come which bodes well for all our shareholders.” 2 For further information: Investor Relations Contacts: Usman M. Bajwa Investor Relations Officer Telephone: +92 51 920 9701 Fax: +92 51 920 9702 Email: [email protected] Notes to Editors OGDCL, the largest petroleum Exploration and Production (E&P) Company in Pakistan, was listed on all three stock exchanges of the country in November 2003 and its Global Depository Shares (GDS) were issued on London Stock Exchange in December 2006. It holds the largest portfolio of recoverable hydrocarbon reserves of Pakistan, at 41% of gas and 58% of oil, respectively, as at December 31, 2013. It contributed 30% of the country’s total natural gas production and 45% of its total oil production as of May 2014. With a portfolio of 62 exploration licences, the Company has the largest exploration acreage in Pakistan, covering 31% of the total awarded acreage as of 30 June 2014. Currently all production volumes are being realized from onshore areas of Pakistan, however, the Company also has working interests in Pakistan’s offshore exploration blocks. OGDCL had a net profit after tax of Rs 123.915 billion for the year ended 30 June 2014. 3 SUMMARY RESULTS During the year under review, OGDCL continued to deliver robust financial results coupled with steady operational performance while successfully maintaining its position as the leading performer in E&P sector in terms of oil & gas reserves, production and exploration acreage in the Country. Financial Performance Review Financial year 2013-14 emerged as a landmark year in the history of OGDCL with its Profit after Taxation increasing by 35.8% and reaching a new record level of Rs 123.915 billion (2012-13: Rs 91.273 billion) translating into Earnings per Share of Rs 28.81 (2012-13: Rs 21.22). The Company’s Sales Revenue exhibited a growth of 15.1% surging to Rs 257.014 billion (2012-13: Rs 223.365 billion). These improved results indicate sustainable business growth and financial strength to undertake future exploration & development programs leading to increased shareholder returns in the future. OGDCL’s financial performance witnessed during the year has been substantially driven by increase in oil & gas production coupled with favorable exchange rate. In addition, increase in realized prices of crude oil and gas averaging US$ 87.71/barrel and Rs 282.95/Mcf compared with US$ 83.40/barrel and Rs 265.88/Mcf, respectively during the preceding year, also contributed positively to Company’s financial growth. Furthermore, higher other income owing to increase in return on investments and bank deposits is another significant factor adding to Company’s improved financial performance. Liquidity and Cash flow Analysis During the year 2013-14, the Company’s cash flow from operations after working capital changes and payment of income tax of Rs 54.647 billion & Royalty of Rs 29.931 billion was Rs 50.390 billion. After adjusting for investment and financing activities of Rs 25.468 billion and Rs 27.222 billion respectively, the Company’s cash & cash equivalents at the end of the year were Rs 40.114 billion. In order to maintain a healthy liquidity position and to ensure smooth running of the Company’s exploration, development and production activities, efforts for recovery of overdue receivables continued during the year under review. In this connection, the Company’s Management carried out vigorous follow-ups for recovery of receivables simultaneously requesting GoP for early resolution of prevailing inter-corporate circular debt issue. As a result of these efforts, the Company witnessed higher receivable collection in comparison with the previous years. Financial results for the year ended 30 June 2014 are summarized below: (Rs in billion) Profit before taxation 172.350 Taxation (48.435) Profit for the year 123.915 Un-appropriated profit brought forward 263.501 Other comprehensive loss (1.801) Profit available for appropriations 385.615 4 Appropriations Transfer to capital reserves (0.850) Distribution through Dividends Final Dividend 2012-13 @ Rs 2.75 per share (27.50%) (11.828) First Interim Dividend 2013-14 @ Rs 2.00 per share (20.00%) (8.602) Second Interim Dividend 2013-14 @ Rs 2.00 per share (20.00%) (8.602) Third Interim Dividend 2013-14 @ Rs 2.25 per share (22.50%) (9.677) (38.709) Un-appropriated profit carried forward 346.056 Final Dividend The Board of Directors has recommended the final cash dividend of Rs 3.0 per share in addition to three cumulative interim cash dividends of Rs 6.25 per share already declared and paid during the year. This makes a total dividend of Rs 9.25 per share (92.50%) for the year ended 30 June 2014. Contribution to National Exchequer Being the leading Exploration and Production (E&P) Company of Pakistan, OGDCL is making enormous contribution towards the national exchequer on account of corporate tax, Royalty, general sales tax, excise duty, development surcharge and dividend. During the year 2013-14, a sum of Rs 132.261 billion was contributed to the national exchequer. In addition, the Company’s oil & gas production has significantly contributed towards foreign exchange savings on account of import substitution. Moreover, OGDCL was declared as top corporate tax payer by the Federal Board of Revenue (FBR) as it paid the highest amount of tax in the “Companies” category in the Tax Year 2013. Critical Performance Measures and Indicators OGDCL has in place wide range of financial and non-financial key performance indicators (KPIs) which are used to measure performance against our strategic priorities. These KPIs are in the form of six years performance summary which are shown in our Annual Report. Market Share Information from an Independent Source OGDCL, in terms of exploration acreage, recoverable hydrocarbon reserves and oil production, is the largest E&P Company in Pakistan. With a portfolio of 62 exploration licenses, OGDCL holds the largest exploration acreage in Pakistan covering 31% of the total awarded acreage as of 30 June 2014.