ISLAMABAD: Fuelled by currency appreciation and robust international oil prices, the state-run Oil and Gas Development Company Limited (OGDCL) on Tuesday posted a record Rs124 billion profit in 2013-14, up 36 per cent over the previous year.

The announcement came after a meeting of the OGDCL board of directors convened to approve the company’s financial results for the year ending June 30, 2014.

“During 2013-14, OGDCL continued to deliver robust financial results coupled with steady operational performance while successfully maintaining its position as the leading player in exploration and production sector in terms of oil and gas reserves, production and exploration acreage in the country,” said Zahid Muzaffar who is Petroleum Ministry’s Adviser and Chairman of the OGDCL board.

He said the company recorded improvement in its production volumes, reaching an average daily net crude oil and gas production of 41,330 barrels and 1,173 million cubic feet (mmcf) as against 40,101 barrels and 1,108 mmcf respectively in the previous year. Moreover, average daily production of LPG also increased by 25 tonnes.

The company’s sales revenue increased by 15.1 per cent to Rs257.014bn compared to Rs223.365bn in the last year. Its net profit after taxation increased by 35.8pc to Rs123.915bn against Rs91.273bn profit earned the preceding year.

This translated into earnings per share of Rs28.81, enabling the board of directors to declare cash dividend of Rs3 per share (30 per cent) totalling to Rs9.25 per share (92.50 per cent) for the year ended June 30, 2014. (It has already paid Rs6.25 per share cash dividends before these final results). In comparison, the company paid Rs8.25 per share (82.50 per cent) during 2012-13.

The OGDCL was also successful on the exploration front where it realised two new finds of hydrocarbon namely Saand-1 in district Tando Allah Yar concession and Maru East-1 in District Ghotki, both in Sindh province.

According to Vahaj Ahmad of Topline Securities, the company’s higher earnings during the year were mainly on account of two per cent higher oil production and 6pc average appreciation in the rupee. He said the 25 per cent increase in operating costs restricted gross profit growth at 11 per cent.

The analyst said the company’s other income grew by 22pc to Rs19bn on account of interest income on government-backed securities, while exploration expenses dropped 42pc to Rs8.7bn.

He explained that although the country’s largest petroleum operator reported 17pc growth in pretax profits, significantly lower effective tax rate of 28pc in fiscal year resulted in 36pc growth in net earnings. The company had reported 54pc effective tax rate in fourth quarter of fiscal year 2013 which resulted in lower-than-expected profits the previous year.

Published in Dawn, Aug 6th, 2014