Oil&gas Regs Regulatory News (OGDC)

26 Apr 2007 10:29

Oil & Gas Development Company Ltd26 April 2007 Islamabad 26 April 2007 FOR IMMEDIATE RELEASE OGDCL ANNOUNCES UNAUDITED STANDALONE NINE MONTHS RESULTS TO 31 MARCH, 2007 Oil and Gas Development Company Limited (OGDCL), (Ticker: OGDC), today announcesits un-audited standalone financial results for the nine months ended 31 March,2007. Financial Statements have been prepared in accordance with InternationalFinancial Reporting Standards. - Ends - For further information: Investor Relations Contacts Usman BajwaInvestor Relations OfficerTelephone: +92 51 920 9888Fax: +92 51 920 9858Email: Usman_Bajwa@ogdcl.com Notes to Editors OGDCL is the largest petroleum exploration and production, or E&P, company inthe Pakistan oil and gas sector, with a primary focus on gas. With a portfolio of 42 exploration licences, the Company has the largestexploration acreage (80,128.76 Sq. Kms) in Pakistan. This includes twoexploration licences namely Guddu and Indus offshore-S granted to the Company inFebruary and March 2007. While its focus to date has been on onshore exploration, the Company has alsorecently begun conducting offshore exploration activities; an area which theCompany believes has significant untapped potential. OGDCL had a net profit after tax of Rs 34.497 billion for the nine months ended31 March, 2007. OIL AND GAS DEVELOPMENT COMPANY LIMITEDBALANCE SHEET (Un-audited)AS AT MARCH 31, 2007 Un-audited Audited Un-audited Audited March 31, June 30, March 31, June 30, 2007 2006 2007 2006 Note (Rupees '000) Note (Rupees '000) SHARE CAPITAL AND RESERVES NON CURRENT ASSETS Property, plant and 7 20,135,456 19,575,807 equipment Share capital 3 43,009,284 43,009,284 Development and 8 24,891,752 21,653,562 production assets Exploration and 9 3,554,763 2,551,149 evaluation assets - intangible Capital reserve 4 2,385,682 2,219,027 Stores held for capital 825,169 677,441 expenditure 49,407,140 44,457,959 Un-appropriated profit 52,820,414 49,541,966 Long term investments 10 2,850,660 2,729,807 98,215,380 94,770,277 Long term loans and 820,060 1,391,552 receivables Long term prepayments 38,653 58,021NON CURRENT LIABILITIES 53,116,513 48,637,339Deferred liabilities CURRENT ASSETS Taxation 10,932,625 10,010,991 Stores, spares and loose 17,610,457 12,829,747 tools Employee benefits 1,513,143 1,420,245 Stock in trade 73,864 65,608Provision for decommissioning 4,827,306 4,221,756 Trade debts 11 33,836,786 24,498,986cost 17,273,074 15,652,992 Loans and advances 2,064,691 1,835,159 Deposits and prepayments 316,959 300,260CURRENT LIABILITIES Interest accrued 287,026 494,087 Trade and other payables 5 17,804,847 7,174,483 Other receivables 379,635 256,722Provision for taxation - 3,716,958 Advance tax 3,272,227 - 17,804,847 10,891,441 Short term investments 16,106,443 31,209,932 Cash and bank balances 6,228,700 1,186,870 CONTINGENCIES AND COMMITMENTS 6 - - 80,176,788 72,677,371 133,293,301 121,314,710 133,293,301 121,314,710 The annexed notes 1 to 16 form an integral part of these financial statements. Chairman and Chief Executive Director OIL AND GAS DEVELOPMENT COMPANY LIMITEDPROFIT AND LOSS ACCOUNT (Un-audited)FOR NINE MONTHS ENDED MARCH 31, 2007 Quarter ended March 31, Nine months ended March 31, 2007 2006 2007 2006 Note (Rupees '000) Net sales 12 25,491,587 27,274,627 75,017,749 69,942,829Royalty 2,743,484 3,028,901 8,201,714 7,795,031 2,748,103 24,245,726 66,816,035 62,147,798 Operating expenses 13 4,262,612 3,698,572 12,181,401 10,204,248Exploration and prospecting expenditure 1,337,555 746,087 5,202,339 2,587,115Transportation charges 301,075 288,803 813,035 751,055 5,901,242 4,733,462 18,196,775 13,542,418 16,846,861 19,512,264 48,619,260 48,605,380 General and administration expenses 296,404 307,204 718,970 750,508Finance cost 109,462 1,677 331,235 5,266Workers' Profit Participation Fund 856,442 1,006,039 2,522,741 2,548,880 1,262,308 1,314,920 3,572,946 3,304,654 15,584,553 18,197,344 45,046,314 45,300,726Other income 687,847 917,401 2,885,766 3,127,991 PROFIT BEFORE TAXATION 16,272,400 19,114,745 47,932,080 48,428,717Provision for taxation 4,758,185 6,215,030 13,305,245 15,223,933 PROFIT AFTER TAXATION 11,514,215 12,899,715 34,626,835 33,204,784 Earnings per share - basic and diluted (Rupees) 14 2.68 3.00 8.05 7.72 The annexed notes 1 to 16 form an integral part of these financial statements. Chairman and Chief Executive Director OIL AND GAS DEVELOPMENT COMPANY LIMITEDCASH FLOW STATEMENT (Un-audited)FOR NINE MONTHS ENDED MARCH 31, 2007 Nine months ended March 31, 2007 2006 (Rupees '000)Cash flows from operating activities Profit before taxation 47,932,080 48,428,717 Adjustments for: Depreciation 2,196,549 2,201,677 Amortization of development and production assets 2,750,231 2,215,568 Royalty 8,201,714 7,795,031 Workers' Profit Participation Fund 2,522,741 2,548,880 Provision for employees' benefits 339,276 330,789 Un-winding of discount - provision for decommissioning cost 327,209 - Interest income (2,429,592) (2,316,905) Un-realized (gain)/loss on investments at fair value through profit or loss (2,270) (56,030) Dividend income (300,654) (398,970) Profit on disposal of property, plant and equipment (22,744) (13,006) Interest income on long term receivables (39,622) (64,741) 61,474,918 60,671,010Working capital changes (Increase)/decrease in current assets: Stock in trade and stores, spares and loose tools (4,788,966) (2,400,729) Trade debts (9,337,800) (9,901,516) Deposits and prepayments (16,699) 5,464 Advances and other receivables 227,686 590,586 Increase/(decrease) in current libilities: Trade and other payables (225,310) 243,476 Cash generated from operations 47,333,829 49,208,291 Royalty paid (6,920,613) (7,051,025) Employees' benefits paid (246,378) (1,249,123) Received from Workers' Profit Participation Fund 30,983 119,989 Taxes paid (19,372,796) (10,849,752) (26,508,804) (19,029,911) Net cash from operating activities 20,825,025 30,178,380 Cash flows from investing activities Fixed capital expenditure (9,619,776) (6,857,406) Interest received 2,724,735 1,959,344 Dividend received 300,654 398,970 Purchase of investments (250,000) (198,000) Proceeds from encashment of investments held to maturity 41,065 (46,860) Proceeds from disposal of property, plant and equipment 24,901 13,882 Long term prepayments 19,368 (35,010) Net cash used in investing activities (6,759,053) (4,765,080) Cash flows from financing activities Dividend paid (24,129,901) (24,729,349) Net cash used in financing activities (24,129,901) (24,729,349) Increase/(Decrease) in cash and cash equivalents (10,063,929) 683,951Cash and cash equivalents at beginning of the period 32,177,279 37,799,224 Cash and cash equivalents at end of the period 22,113,350 38,483,175 The annexed notes 1 to 16 form an integral part of these financial statements. Chairman and Chief Executive Director OIL AND GAS DEVELOPMENT COMPANY LIMITEDSTATEMENT OF CHANGES IN EQUITY (Un-audited)FOR NINE MONTHS ENDED MARCH 31, 2007 Share Capital Un-appropriated capital reserve profit Total (Rupees '000)Balance as at June 30, 2005 43,009,284 1,995,996 38,204,702 83,209,982 Profit for nine months ended March 31, 2006 - - 33,204,784 33,204,784Transfer to capital reserve - 298,292 (298,292) -Final dividend 2005: Rs 2.75 per share - - (11,827,553) (11,827,553)First interim dividend 2006: Rs 1.25 per share - - (5,376,161) (5,376,161)Second interim dividend 2006: Rs 1.75 per share - - (7,526,625) (7,526,625)Balance as at March 31, 2006 43,009,284 2,294,288 46,380,855 91,684,427Profit for quarter ended June 30, 2006 - - 12,762,939 12,762,939Transfer to capital reserve - (75,261) 75,261 -Third interim dividend 2006: Rs 2.25 per share - - (9,677,089) (9,677,089)Balance as at June 30, 2006 43,009,284 2,219,027 49,541,966 94,770,277 Balance as at July 01, 2006 43,009,284 2,219,027 49,541,966 94,770,277Profit for nine months ended March 31, 2007 - - 34,626,835 34,626,835Transfer to capital reserve - 166,655 (166,655) -Final dividend 2006: Rs 3.75 per share - - (16,128,482) (16,128,482)First interim dividend 2007: Rs 1.75 per share - - (7,526,625) (7,526,625)Second interim dividend 2007: Rs 1.75 per share - - (7,526,625) (7,526,625)Balance as at March 31, 2007 43,009,284 2,385,682 52,820,414 98,215,380 The annexed notes 1 to 16 form an integral part of these financial statements. Chairman and Chief Executive Director OIL AND GAS DEVELOPMENT COMPANY LIMITEDNOTES TO THE FINANCIAL STATEMENTS (Un-audited)FOR NINE MONTHS ENDED MARCH 31, 2007 1 LEGAL STATUS AND OPERATIONS Oil and Gas Development Company Limited (OGDCL), "the Company", was incorporated on October 23, 1997 under the Companies Ordinance, 1984. The registered office of the Company is located at OGDCL House, Plot No. 3, F-6/G-6, Blue Area, Islamabad, Pakistan. The Company is deemed to own all the properties, rights, assets, obligations and liabilities of Oil and Gas Development Corporation (OGDC) as on that date. The Company is engaged in the exploration and development of oil and gas resources, including production and sale of oil and gas and related activities. The Company is listed on all the three stock exchanges of Pakistan. Government of Pakistan (GoP) divested 214,091,139 shares being 4.98% of its shareholding in October 2003 through an Initial Public Offering. In December 2006, GoP further divested 408,588,000 shares being 9.5% of its shareholding through secondary offering in the form of Global Depository Shares ( 1 GDS = 10 ordinary shares of the Company) to international institutional investors including an offering of GDSs to certain qualified institutional buyers in the United States under Rule 144A of the Securities Act and secondary offering of shares to local institutional investors. GDSs are listed on the London Stock Exchange. In addition, GoP also divested 21,505,000 shares being 0.50% of its shareholding to the general public in February 2007. Accordingly, GoP owns 85.02% of the shares of the Company as of March 31, 2007. 2 BASIS OF PREPARATION These financial statements are un-audited and are being submitted to shareholders as required under section 245 of the Companies Ordinance, 1984 and have been prepared in accordance with the requirements of International Accounting Standard 34 "Interim Financial Reporting". The accounting policies adopted for preparation of these financial statements are the same as those applied in preparation of annual financial statements of the Company for the year ended June 30, 2006. 3 SHARE CAPITAL Issued, subscribed and paid up capital March 31, June 30, March 31, June 30, 2007 2006 2007 2006 Number Number (Rupees '000) 1,075,232,100 1,075,232,100 Ordinary shares of Rs 10 each 10,752,321 10,752,321 issued for consideration other than cash (note 3.1) 3,225,696,300 3,225,696,300 Ordinary shares of Rs 10 each 32,256,963 32,256,963 issued as fully paid bonus shares 4,300,928,400 4,300,928,400 43,009,284 43,009,284 3.1 In consideration for all the properties, rights, assets, obligations and liabilities of OGDC vested in the Company, 1,075,232,100 fully paid ordinary shares of Rs 10 each were issued to GoP on October 23, 1997. Currently, the GoP holds 85.02% paid up capital of the Company. Authorised share capital 5,000,000,000 (June 30, 2006 : 5,000,000,000) ordinary shares of Rs 10 each. 4 CAPITAL RESERVE The Company has set aside a specific capital reserve by the name of contingency reserve for self insurance of rigs, wells, plants, pipelines, workmen compensation and vehicle repair. Refer note 10.2 for investments against contingency reserve. The reserve is not available for distribution. 5 TRADE AND OTHER PAYABLES March 31, June 30, 2007 2006 (Rupees '000) Creditors 191,781 172,665 Accrued liabilities 2,243,233 2,250,575 Royalty 2,570,015 1,288,914 Excise duty 111,162 97,996 General sales tax 1,317,212 1,329,134 Payable to joint venture partners 853,293 1,071,201 Retention money 295,292 305,035 Un-paid dividend 7,526,940 237 Un-claimed dividend 63,472 538,344 Workers' Profit Participation Fund 2,522,741 - Advances from customers 68,823 56,563 Other payables 40,883 63,819 17,804,847 7,174,483 6 CONTINGENCIES AND COMMITMENTS 6.1 Claims against the Company as on March 31, 2007, not acknowledged as debts, amounted to Rs 462.410 million (June 30, 2006: Rs 494.876 million). 6.2 Capital commitments outstanding as on March 31, 2007 amounted to Rs 12,196.797 million (June 30, 2006: Rs 7,027.459 million). These include amounts aggregating Rs 2,550.918 million (June 30, 2006 : Rs 2,527.456 million) representing the Company's share in the minimum work commitments related to operated/non-operated concessions. 6.3 Letters of credit issued by various banks outstanding at the period end amounted to Rs 3,697.474 million (June 30, 2006 : Rs 6,589.035 million). 6.4 Certain banks have issued guarantees aggregating Rs 104.844 million (June 30, 2006 : Rs 106.823 million ) on behalf of the Company in the ordinary course of business. 6.5 Status of contingencies relating to pending tax assessments/ re-assessments is the same as disclosed in the audited financial statements for the year ended June 30, 2006. 7 PROPERTY, PLANT AND EQUIPMENT Nine months ended March 31, 2007 2006 Note (Rupees '000) Opening book value 18,484,962 18,506,004 Additions during the period 7.1 2,446,612 2,239,568 Book value of disposals 7.2 (2,157) (876) Depreciation charge for the (2,358,164) (2,377,721) period Closing book value 18,571,253 18,366,975 Capital work in progress 1,564,203 984,801 20,135,456 19,351,776 7.1 Additions during the period Freehold land 6,644 6,252 Leasehold land - 10,672 Buildings, offices and roads on 19,742 65,262 freehold land Buildings, offices and roads on - 34,539 leasehold land Plant and machinery 1,325,828 1,563,198 Rigs 123,319 93,591 Pipelines 330,035 88,360 Vehicles 372,390 275,313 Office and domestic equipment 28,629 61,084 Office and technical data 75,839 40,292 computers Furniture and fixture 5,709 1,005 Decommissioning cost 158,477 - 2,446,612 2,239,568 7.2 Book value of disposals during the period Plant and machinery 267 463 Rigs 26 72 Vehicles 1,591 303 Office and domestic equipment 149 38 Office and technical data 124 - computers 2,157 876 8 DEVELOPMENT AND PRODUCTION ASSETS Opening book value 20,429,379 20,544,273 Additions during the period 4,409,125 1,824,208 Amortization charge for the (2,750,231) (2,215,568) period Closing book value 22,088,273 20,152,913 Wells in progress 2,803,479 3,799,860 24,891,752 23,952,773 9 EXPLORATION AND EVALUATION ASSETS - INTANGIBLE Balance at beginning of the 2,551,149 1,225,968 period Additions in exploration and evaluation 5,561,712 2,412,769 assets during the period 8,112,861 3,638,737 Cost of dry and abandoned wells written (2,613,215) (1,197,482) off during the period Cost of wells transferred to development (1,944,883) (568,410) and production assets (4,558,098) (1,765,892) 3,554,763 1,872,845 10 LONG TERM INVESTMENTS Investments in related parties 10.1 491,500 491,500 Investments held to maturity 10.2 2,359,160 2,238,307 2,850,660 2,729,807 10.1 Investments in related parties Wholly owned subsidiary Company - un-quoted Pirkoh Gas Company (Private) 418,000 418,000 Limited Percentage holding 100% 1,254,000 fully paid ordinary shares of Rs 1,000 each (including 836,000 bonus shares). Breakup value based on latest financial statements was Rs 6,910.550 million (June 30, 2006: Rs 7,051.056 million). Associated Company - quoted Mari Gas Company Limited 73,500 73,500 Percentage holding 20% 7,350,000 fully paid ordinary shares of Rs 10 each Market value Rs 922.425 million (June 30, 2006: Rs 929.775 million) 491,500 491,500 10.2 Investments held to maturity Defence Saving Certificates 10.2.1 544,160 673,307 (DSCs) Term Deposit Receipts (TDRs) 10.2.2 1,815,000 1,565,000 2,359,160 2,238,307 10.2.1 Face value of investments in DSCs is Rs 117.184 million (June 30, 2006: Rs 158.249 million). These carry effective interest rates ranging between 16% to 18% (June 30, 2006: 16% to 18%) per annum and are due to mature in periods ranging between 2007 to 2009. 10.2.2 Face value of investments in TDRs is Rs 1,815 million (June 30, 2006: Rs 1,565 million). These carry effective interest rates of 11.1% to 11.4% (June 30, 2006: 11% to 11.1%) and are due to mature in 2007. Investments amounting to Rs 2,216.075 million (June 30, 2006: Rs 1,908.496 million) are due to mature within next 12 months, however these have not been classified as current assets based on the management's intention to reinvest them in the like investments upto the extent of capital reserve. These investments are identified against capital reserve (note 4). 11 TRADE DEBTS Trade debts - un-secured, 33,836,786 24,498,986 considered good Trade debts - un-secured, 177,737 177,737 considered doubtful 34,014,523 24,676,723 Provision for doubtful amount (177,737) (177,737) 33,836,786 24,498,986 11.1 Uch Power Limited (UPL) has withheld Rs 4.339 billion (June 30, 2006: Rs 4.265 billion) against claims for damages related to minimum supply of gas. 11.2 These include receivables of Rs 6.147 billion (June 30, 2006: Rs 1.7 billion) which have been withheld by the refineries under the directive of Ministry of Petroleum and Natural Resources. These represent revenue on crude oil in excess of USD 50 per barrel for which discount table is yet to be finalized. 11.3 These include receivables of Rs 4.136 billion (June 30, 2006: Rs 2.580 billion) withheld by the refineries under the directive of Directorate General Petroleum Concessions pending finalization of Crude Oil Sale Agreements. The Director General (Oil) vide letter No. PL-NPA(4)/06 (Cr & Cond. Pr) dated 20th December 2006 has advised the refineries to release 50% of the withheld amount and deposit the balance 50% in 90 days interest bearing accounts which shall be released along with interest to the Company upon finalization of Crude Oil Sale Agreements (COSAs). 12 NET SALES Quarter ended March 31, Nine months ended March 31, 2007 2006 2007 2006 Gross sales (Rupees '000) Crude oil 12,261,149 11,542,396 37,821,522 32,761,027 Gas 15,005,366 18,446,590 42,960,207 43,664,351 Kerosene oil 125,538 122,676 402,437 407,484 High speed diesel oil 90,225 91,806 338,800 300,692 Solvent oil 4,486 36,825 38,758 220,608 Naphtha 739,830 742,458 2,289,775 2,050,087 Liquefied petroleum gas 1,380,642 687,304 3,272,710 1,929,183 Sulphur 32,654 60,268 59,783 147,308 Other operating revenue 11,983 2,610 41,834 26,094 29,651,873 31,732,933 87,225,826 81,506,834 Government levies Excise duty (373,016) (384,592) (1,065,005) (1,137,867) Development surcharge (10,921) (10,592) (38,724) (41,994) General sales tax (3,776,349) (4,063,122) (11,104,348) (10,384,144) (4,160,286) (4,458,306) (12,208,077) (11,564,005) Net sales 25,491,587 27,274,627 75,017,749 69,942,829 13 OPERATING EXPENSES Salaries, wages and 542,152 618,572 1,672,784 1,546,575 benefits Travelling and 80,617 78,586 221,826 212,466 transportation Repairs and maintenance 113,298 202,613 516,279 389,808 Stores and supplies 190,685 291,850 608,933 527,545 consumed Rent, fee and taxes 61,242 37,637 203,278 122,212 Insurance 60,176 63,307 176,191 174,873 Communication 6,588 6,535 20,355 22,737 Utilities 4,701 2,721 15,699 11,888 Land and crop 33,548 28,070 70,658 97,436 compensation Contract services 42,492 117,247 455,178 346,530 Joint venture expenses 329,163 370,535 1,456,302 1,165,235 Desalting, decanting and 34,516 58,263 128,177 147,883 naphtha storage charges Gas processing charges 49,734 19,615 107,150 76,388 Charges related to minimum 700,000 - 700,000 - supply of gas - liquidated damages Welfare of locals at 39,554 18,907 103,885 172,890 fields Write back of provision - (19,119) - (19,119) for benevolent fund Workover charges 105,541 128,083 381,071 345,839 Other expenses 375 1,226 1,226 3,426 Depreciation 824,833 745,747 2,128,835 2,141,459 Amortization of development 894,351 758,716 2,750,231 2,215,568 and production assets Transfer from general and 149,744 175,123 471,599 505,603 administration expenses 4,263,310 3,704,234 12,189,657 10,207,242 Stock of crude oil and other products: Balance at beginning of 73,166 29,736 65,608 32,404 the period Balance at end of the (73,864) (35,398) (73,864) (35,398) period 4,262,612 3,698,572 12,181,401 10,204,248 14 EARNINGS PER SHARE - BASIC AND DILUTED Net profit (Rupees) 11,514,215,000 12,899,715,153 34,626,835,000 33,204,784,153 Average number of 4,300,928,400 4,300,928,400 4,300,928,400 4,300,928,400 shares outstanding Earnings per share - basic and 2.68 3.00 8.05 7.72 diluted (rupees) There is no dilutive effect on the earnings per share of the Company. 15 TRANSACTIONS WITH RELATED PARTIES Related parties comprise subsidiary and associated companies, major shareholders, directors, companies with common directorship, key management staff and staff retirement benefit plans. Transactions with related parties, including other profit oriented state-controlled entities, and balance outstanding at end of the period are disclosed below: Nine months ended March 31, 2007 2006 (Rupees '000) Subsidiary company- Pirkoh Gas Company (Private) Limited Dividend income 250,800 376,200 Services provided to subsidiary by the Company: -Drilling services - 23,484 -Mud engineering services - 217 Gas processing charged by subsidiary Company 107,150 76,388 Technical support provided to subsidiary by the 53,935 43,414 Company Reimbursement of payroll expense 68,219 49,506 Stores and supplies transferred to the 45,872 83,306 subsidiary company Rent of dehydration plant charged by the 5,469 5,392 subsidiary company Receivable as at March 31, 168,863 141,766 Associated company- Mari Gas Company Limited Dividend income 23,520 22,770 Related parties by virtue of common directorship and GoP holdings Pakistan Oilfields Limited Crude transmission charges paid 4,301 9,417 Sale of liquefied petroleum gas 235,217 164,262 Receivable as at March 31, 31,657 22,153 Attock Refinery Limited Sale of crude oil 24,141,832 19,436,420 Desalting/decanting charges paid 23,580 35,781 Receivable as at March 31, 8,646,499 6,135,426 National Refinery Limited Sale of crude oil 7,018,818 5,125,873 Sale of naphtha 2,289,775 1,782,685 Naphtha handling and storage charges 97,923 95,663 Receivable as at March 31, 2,487,122 2,555,023 Pakistan Refinery Limited Sale of crude oil 2,669,658 1,483,295 Receivable as at March 31, 1,523,587 735,178 Pak Arab Refinery Company Limited Sale of crude oil 2,839,006 1,476,537 Receivable as at March 31, 1,198,998 601,669 Pakistan State Oil Company Limited Sale of refined petroleum products 481,438 337,412 Sale of liquefied petroleum gas 17,869 5,573 Purchase of petroleum, oil and lubricants 1,143,465 811,106 Receivable as at March 31, 129,327 195,767 Sui Northern Gas Pipelines Limited Sale of natural gas 24,327,016 22,859,822 Purchase of high BTU value gas 1,570,793 877,424 Receivable as at March 31, 4,962,095 8,431,969 Sui Southern Gas Company Limited Sale of natural gas 13,528,003 10,037,499 Pipeline rental charges 30,159 30,735 Receivable as at March 31, 6,236,495 4,116,528 Enar Petrotech Services Limited Consultancy services 25,302 39,109 Sale of crude oil 1,465,400 1,071,580 Receivable as at March 31, 143,084 257,732 Water and Power Development Authority Sale of natural gas 70,379 46,013 Receipts against long term loan 533,400 533,400 Receivable as at March 31, 7,867 9,935 National Insurance Company Limited Insurance premium paid 340,708 235,399 National Investment Trust Investment made - 200,000 Dividend received 26,334 - National Logistic Cell Crude transportation charges paid 566,278 500,840 Heavy Mechanical Complex Purchase of stores and spares 59,179 19,259 Pak Datacom Limited V-sat charges - 370 Other related parties Contribution to staff benefit funds 339,276 330,789 Remuneration including benefits and perquisites 7,603 2,525 of Chief Executive Remuneration including benefits and perquisites 480,213 220,305 of executives Transactions involving related parties arising in the normal course of business are conducted at arm's length at normal commercial rates on the same terms and conditions as third party transactions using valuations modes as admissible, except in rare circumstances for some of the transactions with the wholly owned subsidiary, where, subject to the approval of the Board of Directors, it is in the interest of the Company to do so. Sale of crude oil to related parties is at a price determined in accordance with the agreed pricing formula as approved by GoP under respective agreement. Sale of natural gas to related parties is at price notified by the GoP whereas sale of Liquefied Petroleum Gas and Refined Petroleum Products is made at prices notified by Oil Companies Advisory Committee/Oil and Gas Regulatory Authority. 16 GENERAL 16.1 Figures have been rounded to the nearest thousand of rupees, unless otherwise stated. The comparative figures have been rearranged, wherever necessary, for the purpose of comparison in the financial statements. 16.2 The Board of Directors approved interim dividend at the rate of Rs 2.00 per share in their meeting held on April 26, 2007. 16.3 These financial statements were authorized for issue by the Board of Directors in their meeting held on April 26, 2007. Chairman and Chief Executive Director This information is provided by RNS The company news service from the London Stock Exchange