ISLAMABAD: Pakistan’s largest exploration and production company, Oil and Gas Development Company Limited, reported an 11% decline in profitability for the first nine months (July–March) of FY2025-26, primarily due to forced production curtailments and weaker global energy prices.
The company posted a profit after tax of *Rs115.3 billion, down from Rs129 billion in the same period last year and Rs171 billion in FY2023-24. Net sales also slipped by 3.5% to *Rs300.1 billion, compared to Rs311 billion a year earlier.
The Board of Directors approved a *third-quarter dividend of Rs3.25 per share, taking the cumulative nine-month payout to **Rs11 per share—the highest-ever third-quarter dividend declared by the company. Earnings per share (EPS) stood at *Rs26.80.
According to the company, financial performance was impacted by production curtailments caused by surplus imported Liquefied Natural Gas in the system, along with lower realised prices of crude oil and LPG. However, improved gas prices and favourable exchange rate movements provided partial support.
During the period, OGDCL contributed Rs160 billion to the national exchequer through taxes, royalties, and dividends, while generating $2.3 billion in foreign exchange savings through import substitution.
Average daily production stood at *32,022 barrels of crude oil, **648 mmcfd of natural gas, and **653 tonnes of LPG, slightly lower than last year. The company revealed that curtailments reduced output by approximately **3,482 barrels of oil, **141 mmcfd of gas, and *48 tonnes of LPG per day.
Despite these challenges, OGDCL achieved a key milestone by surpassing 40,000 barrels per day in gross crude oil production, reflecting the success of targeted optimisation strategies.
On the operational front, the company drilled 10 wells and made *eight new oil and gas discoveries, strengthening its reserves. The Baragzai X-1 well was successfully brought online, currently producing **6,100 barrels of oil per day, **18 mmcfd of gas, and *50 tonnes of LPG.
Development projects also progressed steadily. The Jhal Magsi Project is producing around *14 mmcfd of gas, while the *Dakhni Compression Project has been completed, boosting output. Key initiatives, including Uch and KPD-TAY compression projects, remain on track.
The company noted that production curtailments eased towards the end of the period, partly due to disruptions in LNG imports amid geopolitical tensions, offering some operational relief moving forward.
Story by Khaleeq Kiani
