News Article:

State Owned with A Difference

By: Ghazanfar Hussain

OGDC has the largest share of Oil & Gas

Reserves in the country

Pakistan Oil production has rapidly increased

by 7 percent to 82000 barrels Oil per day,

from 77000 barrels Oil per day
In between financial years 2003-2012 it

remained in the range of 62000-70000 barrel

Oil per day. ( Vahaj Ahmed, the Oil & Gas
sector analyst)

What has led to the recent series of discoveries?

Improved Technology or Goodluck?

An AngloSaxon Oil expert (whose company competes
with others in the field) said a bit of both.
OGDC holds the largest exploration territory in the

country.
The Companys concession Portfolio constitutes 33

owned and operated Joint Venture exploration

licenses.

During the July- September 2013 period:

OGDC sales rose by 16 percent to Rs. 62

billion quarter- on quarter, from 54 billion.

Gained a profit after tax of Rs. 34 billion
A growth of 31 percent from net earnings of

Rs. 26 billion quarter on quarter.

Companys Financial
Position
Company is not worried about its operational and

financial performance
Company is plagued by the circular debt.
OGDC being at the top end of the supply chains is

worst affected by the prevailing intercorporate

circular debt.
A company official has said that a figure of 35

billion is overdue from refineries and Gas

companies.

Because of these unreceived payments, the

company has an adverse affect on its

liquidity.
This has also made difficult for the

company to finance its ongoing exploration

and development projects.
The timely completion of exploration is

crucial because of the prevailing energy

crisis in the country.

The Government is the biggest beneficiary

as it holds three quarters of the companys

equity.
In November 2003, the privatization

commission divested five percent of the

companys stock through an initial public
offering at the stock exchange.

OGDC on the Stock exchange is giant among the 563

listed companies with as many as 4.3 billion

outstanding shares.
Due to its sheer size, the OGDC stock carries more

than 20 per cent weightage in the KSE-100 index,

which means that the rise or fall of a single rupee in
the price of OGDC stock results in an addition or
deduction of 20 points from the index.
A share of OGDC, therefore, in great measure,

commands the power to set the direction of the stock

market.