An analyst from First Capital Equities said that OGDC would report a growth of 26 percent in the July-September period over the same period of last year with an after tax profit of Rs 9,422 million (EPS Rs 2.19).
"We also expect the company to announce an interim cash dividend in the range of Rs 1.75-2.0,"
PPL is expected to report an earnings growth of 25 percent, with net profit of Rs 2,504 million (EPS Rs 3.65) for 1QFY06 with no expected dividend announcement.
The robust growth in earnings of the two major E&P companies may be attributed to higher world oil prices and increased sales volumes.
OGDC may announce a PAT of Rs 9,422 million (EPS Rs 2.19) for 1QFY06 as compared to Rs 7,468 million (EPS Rs 1.74) during 1QFY05. The expected top-line growth of 40 percent may be attributed to higher international oil prices and increased production levels. The company is also expected to announce an interim cash dividend in the range of Rs 1.75-2.0 as compared to cash dividend of Rs 1.5 during 1QFY05.
PPL is expected to record a growth of 25 percent in earnings for 1QFY06 posting a profit of Rs 2,504 million (EPS PRs3.65) compared to Rs 1,998 million (EPS Rs 2.91) during the same period of last year.
Sui and Kandhkot wellhead gas prices are expected to increase by 23 percent over the same period of last year which, coupled with increased production levels and higher international oil prices resulting in higher gas prices for other fields, is likely to result in a top-line growth of 30 percent. The company abandoned Pasni X-2 well drilling which it started in February 2005.
"We believe that the major portion of this write-off (over Rs 1.3billion) has already been incorporated in the third and fourth quarters of FY05. For 1QFY06, we estimate a minimal portion. The company has changed its policy for recognising exploration and development expenditure to 'Successful Efforts' method. This would not only reduce the amount of exploration and development expenses charged to P&L account for 1QFY06 onwards but would also result in reinstatement of the numbers for corresponding periods of previous years. We do not expect any cash payout by the company.