OGDC Profit Jumps 53% to Rs58.5 Billion, Announces Record Dividend

ISLAMABAD: Oil and Gas Development Company Limited (OGDC) has reported a 53% increase in profit after tax, reaching Rs58.5 billion during the first quarter of the financial year 2026-27. The company also announced its highest-ever first-quarter dividend of Rs5 per share for shareholders.

The latest financial results show strong growth compared with the same period last year. OGDC recorded a profit of Rs38.3 billion during the corresponding quarter of the previous year.

The company’s net sales revenue also increased by 38%, reaching Rs132.4 billion compared with Rs96.2 billion last year. Earnings per share rose to Rs13.60 from Rs8.91.

The Board of Directors approved the financial results during a meeting held in Islamabad. It also declared an interim cash dividend of Rs5 per share, compared with Rs3.50 per share announced in the same quarter last year.

The improvement in financial performance was mainly supported by higher oil and gas production and better market prices. However, production restrictions and the appreciation of the Pakistani rupee against the US dollar affected some of the company’s earnings.

OGDC Increases Oil and Gas Production

OGDC reported growth in all three major production categories during the quarter.

Average daily crude oil production increased by 13.3% to 35,494 barrels. Natural gas production rose by 14.2% to 732 million cubic feet per day, while LPG production increased by 10.5% to 696 tons per day.

The company connected four new wells, Maru-3, Sono-10, Chak 63-5 and Bobi-11, to its production system.

It also installed electrical submersible pumps at four wells, adding 1,630 barrels of crude oil per day. In addition, OGDC completed 26 workover operations to maintain production and improve output from older fields.

Production Restrictions Affect Company Revenue

Despite production growth, OGDC continued to face restrictions imposed by SNGPL and UPL.

These restrictions reduced average daily production by 1,254 barrels of crude oil, 94 million cubic feet of natural gas and five tons of LPG.

The company estimated that these restrictions resulted in a revenue loss of Rs9.7 billion during the quarter. However, this was lower than the estimated loss of Rs19.3 billion recorded during the same period last year.

OGDC also reported higher average selling prices for crude oil and natural gas. The average crude oil price increased to $74.90 per barrel, while the gas price reached Rs796.08 per thousand cubic feet.

Exploration and New Energy Projects

OGDC continued its exploration activities to identify new oil and gas resources in Pakistan.

During the quarter, the company acquired 31 kilometres of 2D seismic data and 213 square kilometres of 3D seismic data.

It also started drilling operations at Bitrism NW-1 and Nahiyoon-1. The company completed a total drilling length of 17,348 metres.

Nahiyoon-1 is an important project because it targets shale gas resources in the Sembar formation. It represents OGDC’s first step towards exploring Pakistan’s unconventional gas potential.

The company is also working on a regional study to assess tight gas resources.

Major Projects to Improve Energy Production

OGDC is investing in several projects to increase production and improve the recovery of oil and gas from existing fields.

Construction and mechanical work on the Uch Compression Project has been completed. Commissioning and performance testing are underway, with completion expected in stages by December 2026.

The KPD-TAY Compression Project is also progressing and is expected to be completed by March 2027.

Another important project is the Kunnar-Pasakhi Water Injection Project. It aims to improve oil recovery by 8% to 10% and extend the economic life of the fields by seven to eight years.

The company is also working on the Rajian Heavy Oil Facility and other projects to improve production from mature fields.

OGDC Explores New Investment Opportunities

Along with its local operations, OGDC is expanding its investment activities in international energy markets.

In Abu Dhabi Offshore Block-5, exploration and development studies are underway. The company is also working on plans for the Bu Dana, Al Bateen and Al Manhal fields.

First production from these fields is targeted for 2028.

OGDC is also involved in the Reko Diq project in Pakistan. The project operator is reviewing security conditions, financing, investment requirements and development timelines.

The company remains in contact with project partners and the government regarding its investment in this major mineral development project.

Lithium Discovery Adds New Opportunity

OGDC has also identified lithium in geothermal water at the Wahid Bakhsh-1 site.

Laboratory testing conducted by the Pakistan Institute of Nuclear Science and Technology (PINSTECH) found lithium concentrations of 291 milligrams per litre.

This finding could create new opportunities in Pakistan’s energy and mineral sectors. However, further studies are required to assess the available resources and their commercial value.

The company is also examining the potential of geothermal energy as part of its wider diversification strategy.

Strong Financial Contribution to Pakistan

OGDC reported that it contributed Rs82 billion to the national exchequer through taxes, dividends, royalties and other government payments during the quarter.

Its local oil and gas production also helped Pakistan save an estimated $1.32 billion in foreign exchange by reducing the need for imported energy.

The company collected 100% of its billed revenue during the reporting period, showing strong performance in its collection process.

OGDC also approved its first sustainability-related financial disclosures under international reporting standards IFRS S1 and IFRS S2.

Furthermore, the company continued its environmental, social and governance (ESG) activities to improve transparency and responsible business practices.

OGDC Ranks First in Corporate Transparency

OGDC received recognition for its corporate governance and transparency standards.

According to Transparency International Pakistan’s Transparency in Corporate Reporting Assessment 2026, the company ranked first among 104 listed companies from 28 sectors.

It achieved an overall score of 92.71%.

The company also secured full marks in several areas, including anti-corruption programmes, organisational transparency, domestic financial reporting, gender equality and non-discrimination.

OGDC said it would continue focusing on production growth, new exploration, better recovery from existing fields and financial discipline.

The company’s latest results reflect its growing role in Pakistan’s energy sector and its efforts to support national energy security while delivering stronger returns to shareholders.