Oil & Gas Development Company Limited (OGDC) has posted a profit after tax of Rs73.019 billion for the half year ended December 31, 2025, reinforcing its position as a dominant force in Pakistan’s exploration and production landscape. The company’s Board of Directors, in a meeting held on February 23, 2026, approved the financial results for the July–December period and announced a second interim cash dividend of Rs4.25 per share (42.50%). This represents the highest second-quarter dividend in the company’s history and brings the cumulative interim payout for the half year to Rs7.75 per share, marking the largest half-year distribution ever declared by OGDC.
For the reporting period, the company recorded net sales revenue of Rs192.830 billion and earnings per share (EPS) of Rs16.98. Financial performance during the six-month window was influenced by operational and market variables, including enforced production curtailments by SNGPL and UPL due to system load constraints. These restrictions weighed on output volumes, while a comparatively lower average crude oil basket price exerted additional pressure on topline growth. However, the overall impact was partially mitigated by stronger realized gas prices and favorable exchange rate movements, which provided some cushion against declining crude and LPG price realizations.
Beyond profitability, OGDC’s contribution to the national economy remained substantial. During the half year, the company contributed Rs120 billion to the national exchequer through corporate taxes, royalties, dividends, and other statutory levies. Its domestic production also translated into estimated foreign exchange savings of approximately $1.4 billion by reducing reliance on imported energy supplies. This import substitution effect highlights the company’s strategic relevance at a time when external account stability and energy affordability remain key economic priorities for Pakistan.
Operational data reflects both resilience and constraint. Average daily net saleable production during the half year stood at 31,848 barrels of crude oil, 626 million cubic feet (MMcf) of natural gas, and 636 tons of LPG. In comparison, the corresponding period last year recorded 31,477 barrels of oil, 672 MMcf of gas, and 629 tons of LPG per day. Production curtailments during the period reduced daily net output by 3,384 barrels of oil, 152 MMcf of gas, and 51 tons of LPG, underscoring the scale of external limitations faced by the company despite steady operational capabilities.
Exploration activity remained active, with five wells spudded during the reporting window and four oil and gas discoveries made, strengthening the company’s reserves and long-term production outlook. In October 2025, OGDC further expanded its exploration portfolio by securing petroleum exploration rights over eight offshore blocks in a competitive bidding round. This move signals a calculated push toward offshore potential, diversifying its asset base and positioning the company for future resource additions.
On the development front, progress across major projects contributed to operational momentum. The Jhal Magsi Project was successfully commissioned and is currently producing around 14 MMcfd of gas along with condensate, adding incremental volumes to the supply chain. Meanwhile, the Dakhni Compression Project was completed ahead of schedule, enhancing production efficiency, while additional compression initiatives continue to advance in line with internal timelines.
The company reported that the cumulative impact on sales revenue amounted to Rs36.468 billion, primarily attributable to lower production volumes and weaker realized prices for crude oil and LPG. Offsetting factors included improved gas pricing and exchange rate adjustments. Encouragingly, receivables management showed notable improvement, with gas receivables collection reaching 156% and overall receivables collection recorded at 125%, effectively reversing the earlier buildup trend and strengthening liquidity metrics.
In parallel with financial and operational milestones, OGDC is advancing its environmental, social, and governance (ESG) framework by enhancing climate-related disclosures and embedding sustainability considerations across its value chain. The Board acknowledged management’s continued emphasis on operational efficiency, disciplined capital allocation, and shareholder value creation, enabling the company to deliver record dividends while sustaining its leadership in Pakistan’s energy exploration and production sector.
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