International investors keen to invest in OGDCL shares

A team of Oil and Gas Development Corporation Ltd (OGDCL) held detailed interactions with leading international investors to convince them to invest in Pakistan by highlighting glowing incentives.

At ‘Asean Stars Conference’ organized the Bank of America Merrill Lynch in Singapore OGDCL representatives apprised the world’s leading investment companies about conducive and investment friendly environment along with commitments of the government.

Various Asset Management Companies and Fund Managers of the world attended the conference and Pakistani delegation highlighted financial state of OGDCL which attracted the Fund Managers to invest in OGDCL in Pakistan.

There was a reasonable demand and appetite for OGDCL share in the international market. The investors raised the issue germane to non availability of OGDCL share in the market and indicated their interest in OGDCL share and expected that Government of Pakistan will decide to make divestment a prompt, positive and encouraging response is expected from the internal market.

The OGDCL team interacted with foreign investors which includes Morgan Stanley Investment Management Inc, Putnam Investments, LLC, Walter Capital Partners SA, Nomura Asset Management Co. Ltd, Dws Investments, Sloane Robinson LLP, Prince Street Capital Management Inc, HSBC Holding Plc, TCW Group, Aberdeen Asset Managers Ltd, NTUC Income Insurance Co-Operative Limited, Natixis Asset Management (International), Rovida Asset Management (Singapore) Ltd and Somerset Capital Management LLP.

The investors raised quires about the overall economic aspects to understand some misconception about certain relevant areas which investors typically consider while making investment decisions.

The perception was developed on account of repenting of domestic law and order situation; the institutional investors have a better insight about financial and securities market and were likely to take a mature position with long term investment prospective.

The other issues raised during the conference were Energy shortfalls with ramifications, effect of circular debt on the ability of OGDCL to meet its funding requirements, gas supply arrangements with the fertilizer sector and resulting benefits for OGDCL, overall state of revenues, profitability, cost of doing business, earning per share and share value of the company, dividend policy of the company, availability of OGDCL shares in the market and possibility of further divestment by the Government, Incentives for the E&P sector under the existing regulatory and policy regimes governing E&P sector, challengers in general and for E&P sector in specific and security situation in the country.

According to the investors big lots of OGDCL shares were not available in the market as major share holders preferred to retain their share in the company

Meanwhile, a meeting was called in EPZA to take immediate steps to increase investment in Export Processing Zone Authority EPZA.

During the meeting a committee was formed by Chairman EPZA, Saadat S. Cheema with a mandate to initiate steps to open and revive the sick units which stopped functioning due to any reasons n the past.

This Committee will soon submit its findings and recommendations to Chairman EPZA.

It was mutually decided in the meeting that in order to revive these sick units certain relaxations will be given to the investors so that operations could start on ASAP basis in these units.