OGDCL profit rises 53% to Rs58.5bn in September quarter

Oil and Gas Development Company Limited (OGDCL), Pakistan's largest exploration and production company, reported a consolidated profit of Rs58.5 billion for the quarter ended September 30, 2026. The figure is nearly 53% higher than the Rs38.3 billion earned in the same quarter last year. The company submitted its results to the Pakistan Stock Exchange on Friday.

Earnings per share rose to Rs13.60 from Rs8.91. The board declared an interim cash dividend of Rs5 per share, or 50%, for the quarter. According to TechJuice, this is the highest dividend the company has declared for a first quarter. ProPakistani put the payout ratio at 37 percent.

Revenue rose 38% to Rs132.4 billion from Rs96.2 billion, and gross profit increased to Rs83.1 billion from Rs56.3 billion. Profit before income tax and final taxes was Rs88 billion, compared with Rs62 billion a year earlier.

ProPakistani reported that the rise was driven by higher oil and gas production and income on the company's cash balance. Oil production grew 13% and gas production 17%. LPG production rose 11% and LPG revenues increased. Arab Light prices rose 26% to $90.07 per barrel.

Exploration and prospecting expenditure rose to Rs4.8 billion from Rs3.1 billion. ProPakistani said exploration expenses were up 55% mainly because of higher prospecting costs, and that no dry wells were reported in the quarter or in the same period last year. General and administration expenses edged up to Rs2.2 billion from Rs2.1 billion, while finance costs fell to Rs1.16 billion from Rs1.22 billion.

Finance and other income rose to Rs13.8 billion from Rs12.2 billion, and share of profit in associates rose to Rs3.94 billion from Rs3.17 billion. Cash and short-term investments reached a record Rs365.5 billion, or Rs84.98 per share, from Rs222 billion a year earlier. Trade receivables declined to Rs595.5 billion from Rs612 billion.

According to ProPakistani, gross margin was 62.7 percent and net margin 44.2 percent, against 58.5 percent and 39.8 percent a year earlier. Return on equity was 14.8 percent and return on assets 12.6 percent. The effective tax rate was 33.5 percent, and OGDCL invested an additional Rs5 billion in the Reko Diq and PIOL front, compared with Rs1 billion a year earlier.