LAHORE (PPI) - As instructed by the Privatization Commission, OGDC has released its 10MFY11 reviewed accounts where it posted net profit of Rs52.8b against earnings of Rs47.6b previously, a growth of 11 percent. Net revenues for the period witnessed a jump of 4 percent and stood at Rs125.617b. Despite this meagre top-line growth, the profit growth is mainly attributed to a lower effective tax rate of 27.2 percent for 10MFY11 versus 37.4 percent recorded in the corresponding period last year. The growth in the companys top-line has been restricted mainly on the back of Rs15.5b retrospective reversal in revenues taken on account of pricing adjustment of Kunnar field. Operating expense also witnessed a 41 percent growth and settled at Rs27bn mainly due to higher amortization cost of development and production assets (up 112 percent). Exploration expenditure on the other hand dipped to Rs5.4bn (down 18 percent) as a result of slower drilling activity this year. Other income too slipped to Rs1.9b versus Rs2.4b recorded in 10MFY10. Just to highlight, on the balance sheet side, the companys trade debts have slightly eased to Rs112b (overdue Rs79.7b) as of April versus Rs127.3b (overdue of Rs93.3b) reported as of March 2011. It is to be noted that the ministry of Petroleum in a letter issued on April 30, 2011 advised OGDC to revise the oil pricing formula for Kunnar and switch it to the pricing of Badin-1 (including pricing discounts) effective from January 2007. Previously, the oil pricing for the field was linked to the pricing formula of Badin-II with no discount being applied. The company is pursuing the matter with the ministry to exclude the applicable discounts from the pricing formula. Had the adjustment not been made, the net revenue for 10MFY11 would have stood around Rs18.5bn.