The Oil and Gas Development Company (OGDC) announced its financial results for the year ended June 30, 2021.
The company reported a 9.3% decline in its profit to Rs. 91.5 billion in the fiscal year 2020-21.
However, OGDC has claimed that it is the largest profit-making organization in the Country.
The contraction in profits was due to a decline in finance and other income.
The oil exploration firm had reported a profit of Rs. 100.9 billion in the fiscal year 2019-20.
Alongside the result, the company announced a final cash dividend of Rs. 1.5 per share taking the total dividend during FY21 to Rs. 6.9 per share.
Net sales of the company went up from Rs. 232.9 billion in the fiscal year 2019-20 to Rs. 239.1 billion in the fiscal year 2020-21, an increase of 2.65%.
The finance cost of the company dived to Rs. 2.2 billion in FY21 compared to Rs. 3 billion in FY20.
During the year, finance and other income took a hit as it plunged 60% to Rs. 14 billion. The company had received Rs. 33.8 billion under this head in FY20.
Against the backdrop of media reporting regarding the purported resignation of Shahid Salim Khan, MD/CEO OGDCL, the Oil & Gas Development Company Limited has deemed it necessary to place the factual position of record.
At the outset, the company has clarified and confirmed that Shahid Salim Khan is performing duties and providing leadership to the Company.
The latest discovery of Wali Well in District Lakki Marwat is one of the major discoveries with significant reserves not seen in the past decade.
Shahid Salim Khan focused on Company’s governance and internal controls from the time he assumed office. A comprehensive exercise was initiated for policy reform and organizational restructuring to manage the business and operations in line with international best practices. The reforms are now in the implementation phase and will bring enhanced efficiency and effectiveness, said the company statement.
OGDCL states that Shahid Salim Khan has conveyed his intention to resign as MD/CEO due to personal and health reasons, but the Board has yet to consider and conclude the matter.
The OGDCL Board has always reposed full confidence in the abilities and competencies of Shahid Salim Khan. The incumbent will meanwhile continue to perform his functions.
This press release has been issued by the OGDCL to nullify the rumors and unsubstantiated media reporting on this issue.