23/11/2012
Oil & Gas Dev. Company: Strong 1Q results, Sinjhoro and Kadanwari to lend further support
Event
OGDC in 1QFY13 announced net profit of PKR25,656mn (EPS PKR 5.97, up 17.1% YoY), operating profit of PKR36,217mn (up 17.5%) and top line of PKR53,795mn (up 20.4%). The company also announced interim cash dividend of PKR1.75/share.
We expect the strong growth in OGDC’s earnings to continue as its bottom line will be supported by start of production from Sinjhoro Phase-1, increase in production from Kadanwari, tie-in of Nur-Bagla fields, and interest income from PKR82bn PPTFC.
Price catalyst
Jun-13 price target: PKR188.1/share.
Catalyst: Resolution of circular debt and Qadirpur pricing issue, production additions from Kadanwari and Sinjhoro and resultant increase in earnings.
