Oil & Gas Development Profit Rises on Higher Crude Prices
Oil & Gas Development Co., Pakistan’s biggest energy explorer, reported a 31 percent increase in first-quarter profit after crude prices rose.
Net income in the three months ended Sept. 30 climbed to 21.9 billion rupees ($252 million), or 5.10 rupees a share, from 16.7 billion rupees, or 3.89 rupees, a year earlier, the Islamabad-based company said in a filing to the Karachi Stock Exchange today. Sales rose to 44.7 billion rupees from 39.5 billion.
Pakistan, which imports 80 percent of its petroleum consumption, needs to increase domestic oil and natural gas production to help meet demand. The nation’s primary energy consumption rose 1.1 percent to 67.6 million tons of oil equivalent in 2010 from a year earlier, according to BP Plc’s Statistical Review of World Energy 2011.
“The result was better than expected because of higher crude prices and lower expenses,” said Farhan Bashir Khan, research analyst at Invest Capital Markets Ltd., in Karachi, who has a “buy” recommendation on the stock.
The average price of Arab Light rose to $109 a barrel in the first quarter from an average of $74 a barrel in same quarter last year, Khan said. The company’s oil production rose 2.5 percent in the three month period and gas output increased 10 percent, he said.
Oil & Gas Development, which has fallen 21 percent this year, rose 1.9 percent to 135.30 rupees as of 12:07 p.m. local time on the Karachi Stock Exchange. The company plans to pay a cash dividend of 1.50 rupees a share, according to the statement.
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