KASE:OGDC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Oil and Gas Development

Executive Summary

Oil and Gas Development Company Limited explores for, develops, produces, and sells oil and gas in Pakistan. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Oil and Gas Development's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OGDC is less volatile than 75% of PK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: OGDC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

5.8%

OGDC

-2.0%

PK Oil and Gas

-1.8%

PK Market


1 Year Return

-23.9%

OGDC

-17.8%

PK Oil and Gas

0.4%

PK Market

Return vs Industry: OGDC underperformed the PK Oil and Gas industry which returned -17.8% over the past year.

Return vs Market: OGDC underperformed the PK Market which returned 0.4% over the past year.


Shareholder returns

OGDCIndustryMarket
7 Day5.8%-2.0%-1.8%
30 Day1.6%-3.8%-4.0%
90 Day-13.6%-14.5%-3.2%
1 Year-19.0%-23.9%-14.4%-17.8%4.5%0.4%
3 Year-20.9%-35.6%-23.0%-32.5%-3.8%-15.6%
5 Year8.6%-17.4%30.7%3.8%25.2%-1.3%

Long-Term Price Volatility Vs. Market

How volatile is Oil and Gas Development's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Oil and Gas Development undervalued compared to its fair value and its price relative to the market?

4.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OGDC (PKR99.97) is trading above our estimate of fair value (PKR25.6)

Significantly Below Fair Value: OGDC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OGDC is good value based on its PE Ratio (4.5x) compared to the PK Oil and Gas industry average (5.5x).

PE vs Market: OGDC is good value based on its PE Ratio (4.5x) compared to the PK market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OGDC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OGDC is good value based on its PB Ratio (0.6x) compared to the PK Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Oil and Gas Development forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

20.8%

Forecasted Energy industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if OGDC's forecast earnings growth is above the savings rate (9.7%).

Earnings vs Market: Insufficient data to determine if OGDC's earnings are forecast to grow faster than the PK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if OGDC's revenue is forecast to grow faster than the PK market.

High Growth Revenue: Insufficient data to determine if OGDC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if OGDC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Oil and Gas Development performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OGDC has a high level of non-cash earnings.

Growing Profit Margin: OGDC's current net profit margins (40.4%) are lower than last year (44.7%).


Past Earnings Growth Analysis

Earnings Trend: OGDC's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: OGDC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OGDC had negative earnings growth (-19.1%) over the past year, making it difficult to compare to the Oil and Gas industry average (-17.6%).


Return on Equity

High ROE: OGDC's Return on Equity (13.5%) is considered low.


Next Steps

Financial Health

How is Oil and Gas Development's financial position?


Financial Position Analysis

Short Term Liabilities: OGDC's short term assets (PKR585.5B) exceed its short term liabilities (PKR91.6B).

Long Term Liabilities: OGDC's short term assets (PKR585.5B) exceed its long term liabilities (PKR77.9B).


Debt to Equity History and Analysis

Debt Level: OGDC is debt free.

Reducing Debt: OGDC has not had any debt for past 5 years.

Debt Coverage: OGDC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: OGDC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Oil and Gas Development current dividend yield, its reliability and sustainability?

6.75%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: OGDC's dividend (6.75%) is higher than the bottom 25% of dividend payers in the PK market (2.25%).

High Dividend: OGDC's dividend (6.75%) is low compared to the top 25% of dividend payers in the PK market (8.09%).


Stability and Growth of Payments

Stable Dividend: OGDC's dividend payments have been volatile in the past 10 years.

Growing Dividend: OGDC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.9%), OGDC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Shahid Khan

0.83

Tenure

Mr. Shahid Salim Khan serves as Director at Mari Petroleum Company Limited since January 30, 2020. He serves as Managing Director, Chief Executive Officer and Director of Oil and Gas Development Company Li...


Leadership Team

NamePositionTenureCompensationOwnership
Shahid Khan
MD, CEO & Director0.83yrno datano data
Irteza Qureshi
Chief Financial Officer5.58yrsno datano data
Kamran Shami
Chief Information Officer3.17yrsno datano data
Shahzad Safdar
Executive Director of HR & Adminno datano datano data
Ahmed Lak
Company Secretary & GM of Legal Services9.83yrsno datano data
Masood Ul Hasssan
General Manager of Human Resources1.83yrsno datano data
Munsif Channa
General Manager of Exploration1.33yrsno datano data
Syed Nadeem Rizvi
General Manager of Treasury0.83yrno datano data
Masood Nabi
Executive Director of Business Development & Joint Venture11.83yrsno datano data
Usman Bajwa
Staff Officer to Managing Directorno datano datano data
Naveed Rehmat
Executive Officerno datano datano data

2.5yrs

Average Tenure

Experienced Management: OGDC's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shahid Khan
MD, CEO & Director0.83yrno datano data
Nessar Ahmed
Independent Director1.58yrsno datano data
Saeed Qureshi
Independent Director1.58yrsno datano data
Naveed Baloch
Non-Executive Director1.33yrsPK₨1.87mno data
Asad Din
Non-Executive Director2.17yrsno datano data
Qamar Sharif
Independent Chairman1.58yrsno datano data
Akbar Khan
Independent Director1.58yrsno data0.000050%
PKR 215.0k
Saud Khawaja
Independent Director1.58yrsno datano data
Fazeel Asghar
Non Executive Director1.17yrsno datano data

1.6yrs

Average Tenure

Experienced Board: OGDC's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Oil and Gas Development Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Oil and Gas Development Company Limited
  • Ticker: OGDC
  • Exchange: KASE
  • Founded: 1961
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: PK₨429.964b
  • Shares outstanding: 4.30b
  • Website: https://www.ogdcl.com

Number of Employees


Location

  • Oil and Gas Development Company Limited
  • OGDCL House
  • Plot No. 3
  • Islamabad
  • 44000
  • Pakistan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OGDCKASE (Pakistan Stock Exchange Limited)YesOrdinary SharesPKPKRJan 2004
OGDCLSE (London Stock Exchange)GDR EACH REPR 10 ORD 'REGS'(WI)GBUSDDec 2006

Biography

Oil and Gas Development Company Limited explores for, develops, produces, and sells oil and gas in Pakistan. The company produces crude oil, gas, liquefied petroleum gas, and sulphur. As of June 30, 2018, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 15:39
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.