ISLAMABAD, Oct 17: The after-tax profit of the Oil and Gas Development Company Limited (OGDCL) for the year 2001 stood at Rs20.644 billion against Rs10.555 billion showing an increase of around 50 per cent.

According to profit and loss account approved by the OGDCL board of directors last week, before-tax profit of the company stood at Rs25.6 billion against Rs12.9 billion, showing an increase of over 49 per cent.

An analysis of the financial results, however, indicated that the profit was ensured through less operating expenses and less exploration expenditure write-off including exploratory dry holes. Official sources in the company said that the results were achieved through strict fiscal discipline, targeted drilling and other exploratory wells and reduction in unnecessary expenditure.

Informed sources, however, said that company could not proceed on new exploration programmes, and failed to secure new concession agreements that resulted in reduction in expenditure on exploration. These sources said that being a national company its profit should come through sale of oil and gas reserves and increased assets and not in simple profit figures.

Net sales of the company were Rs37.8 billion during 2001 against Rs25.1 billion last year showing an increase of around 34 per cent. Oil and gas reserves normally materialize into sales from four to seven years. Other operating revenues earned Rs291 million against Rs161 million last year.

Operating expenses were Rs5.8 billion against Rs5.6 billion last year while payment under royalty to the provinces increased to Rs4 billion against Rs2.7 billion last year. Transportation charges increased to Rs325 million against Rs221 million last year while amortization of exploration and development expenditure declined to Rs514 million against Rs967 million last year.

General and administration expenses of the company increased to Rs430 million against Rs254 million last year while financial charges declined to Rs202 million against Rs1 billion last year. Worker’s profit participation fund, however, increased to Rs1.3 billion against Rs681 million last year, showing an increase of around 50 per cent.

The company’s earning per share increased by over 100 per cent to Rs19.15 per share against Rs9.77 last year.