the company's oil and gas production stands at 59% and 23% respectively
OGDCLâ€™s annual sales for the year 2005 are 39,130 barrels of oil per day, 919 million cubic feet per day of gas, 334 metric tons per day of LPG and 71 metric tons per day of sulphur
In 2007 Current ratio decrease to 6.160 but it is favorable as compared to industry average. In 2008 it is cut near to half to 3.686 but greater then Industry average. So we consider this change as good.
In 2006-07 quick ratio decrease from 6.15 to 3.68.
Due to increase in current liabilities by 90.88% and increase in stock by 61.84% so quick ratio decreased because current assets increase only 14.21 %.
In 2007 quick ratio decrease to 6.15 but it is favorable as compared to industry average. In 2008 it is cut near to half 3.68 but greater then Industry average. So we consider this change as good.
Although in 2006-07 decrease from 54.34% to 47.56% due to increase in exploration and evaluation that increase by 149.52% and increase in asset 5.72% EBIT decrease but compare with industry average it is high. In 2007-08 EBIT improve by 36% due to increase in other income by 129.28% so overall EBIT is improved. That is also above industry average.
In 2006-07 ROE decrease from 1.069 to 1.061 due to decrease in net income .73% but if we compare with industry average this ratio is below. In 2007-08 return on equity increase 1.061 to 1.154 due to other income increase 129.82% and exploration and prospecting cost decrease 10.71% .Although ratio improve but this is again below from industry average.
In 2006-07 gross profit margin increase from 68.435% to 69.62% due to increase expenses by 54.88% so the gross profit increase 5.41% comparing this with industry average 50.68% this ratio is better than industry average. In 2007-08 Gross profit margin improve from 69.62% to 70.01% reason is increase in sale by 25.12%, on the other hand expenses increase by 23.49% this again high from industry average that is 50.89%.
Sale increase by 25.12% In expanses large increase in Royalty which increased by 58.70%. Transportation charges increase by 33.36% so the net income increase only 8.77%.
The equity multiplier ratio improved from 2.8207 to 3.0072 but net profit margin decrease 2% and Asset turnover decrease 0.7976 to 0.7752 so ROE decreased
In 2006-07 net profit margin was 45.51%,asset turnover 0.7752 and equity multiplier was 3.0072 so ROE ratio was 1.061 comparing this with industry average that is 0.466 this ratio is good. In 2007-08 net profit margin is 39.55%, asset turnover 0.8331 and equity multiplier was 3.5008 so ROE ratio was 1.154 comparing this with industry average that is 0.712 this ratio is good