FINANCIAL PERFORMANCE:

OGDCL witnessed yet another improved financial

performance for the year ended 30 June 2018. This is evident

by the fact that Company’s Sales Revenue and Profit before Tax

climbed to 205.335 billion (FY 2016-17: Rs 171.829 billion)

and Rs 112.627 billion (FY 2016-17: Rs 89.137 billion)

showing growth of 19% and 26% respectively. Financial

results are primarily supported by moderate recovery in

average basket price of crude oil which during the twelve

months period stood at US$ 61.21/barrel against US$ 49.27/

barrel in the last year leading to higher average realized price

of US$ 54.56/barrel against US$ 44.04/barrel in the last year.

In addition to the above, OGDCL during the reporting period

recorded improvement in the realized price for gas and LPG

averaging Rs 258.93/Mcf and Rs 55,666/ton compared with

Rs 239.08/Mcf and Rs 43,684/ton respectively in the preceding

year. Increase in LPG production, positive exchange rate

variance and share of profit in associate by 68% lent further

strength to business financials.

However during the year under review, increase in operating

expenses by 6% YoY due to salaries and wages on account

of annual increment of officers and staff, depreciation on

account of capitalization of assets at KPD and amortization

of development and production assets on account of

capitalization of new wells and change in reserves estimates

as a result of reserves evaluation study negatively affected the

financial results. Similarly, higher cost of dry and abandoned

wells owing to eleven (11) wells declared dry and abandoned

against four (4) wells in the last year affected business

financials. Overall, the Company recorded Profit after Tax of

Rs 78.736 billion (FY 2016-17: Rs 63.803 billion) translating

into Earnings per Share of Rs 18.31 (FY 2016-17: Rs 14.83).

Financial results for the year ended 30 June 2018 are

summarized below:

(Rs in billion)
Profit before taxation 112.627
Taxation (33.891)
Profit for the year 78.736
Un-appropriated profit brought
forward
457.882
Other comprehensive loss (0.304)
Profit available for appropriations 536.314
Appropriations:
Transfer to capital and other
reserves
(1.274)
Distribution through Dividends
Final dividend 2016-17
@ Rs 2.00 per share
(8.602)
First interim dividend 2017-18
@ Rs 1.75 per share
(7.527)
Second interim dividend 2017-18
@ Rs 3.00 per share
(12.903)
Third interim dividend 2017-18
@ Rs 2.75 per share
(11.828)
(40.860)
Un-appropriated profit

LIQUIDITY AND CASH FLOW

ANALYSIS:
OGDCL maintained a strong credit rating and a healthy

cash flow during the year and its cash flow from operating

activities after payment of income tax of Rs 20.886 billion

and royalty of Rs 19.280 billion was Rs 50.136 billion. After

adjusting cash inflows with respect to investment activities of

Rs 39.689 billion and cash outflows with respect to financing

activities of Rs 36.809 billion, cash and cash equivalents

at the end of the year were Rs 71.170 billion (FY 2016-17:

Rs 15.075 billion).

As on 30 June 2018, OGDCL’s current and acid test/quick ratio

were 7.35 and 7.02 respectively reflecting sound liquidity and

financial position. Moving forward, the Company envisages

adequate liquidity to carry on exploration, development and

production operations.

TRADE RECEIVABLES:
OGDCL’s overdue receivables on account of prevailing intercorporate

circular debt stood at Rs 121.313 billion as on

30 June 2018. Out of this outstanding amount, Rs 70.969

billion and Rs 38.111 billion are recoverable from SSGC

and SNGPL respectively. Our finance and operational teams

regularly followed-up for prompt recovery of outstanding

trade debts to maintain Company’s cash flows. Moreover,

position of receivables is reported to Ministry of Finance and

Ministry of Energy on daily basis. Government of Pakistan

is also pursuing for satisfactory settlement of inter-corporate

circular debt issue.

FINAL DIVIDEND:
OGDCL during the year under review continues to distribute

healthy dividend among its valued shareholders. In this

respect, Company’s Board of Directors recommended a final

cash dividend of Rs 2.5 per share (25%) in addition to three

(3) cumulative interim cash dividends of Rs 7.5 per share

already declared and paid during the year. This makes a total

dividend of Rs 10.0 per share (100%) for the year ended

30 June 2018.