Oil and Gas Development Company Limited has revealed its consolidated financial performance for the nine month period concluding March 31 2026, documenting a net profit of 115.26 billion rupees. This figure represents an 11 percent contraction compared to the 129.61 billion rupees earned during the same timeframe in the preceding fiscal year. In alignment with this bottom line adjustment, the basic and diluted earnings per share for the energy giant dropped to 26.80 rupees, down from the 30.13 rupees reported in the 2025 fiscal period. Despite the cooling of profits, the company has declared a dividend of 3.25 rupees per share, providing a direct return to its shareholders during this period of operational transition.
The decline in overall profitability was primarily attributed to a marginal dip in top line sales revenue combined with rising operational and exploration expenditures. Net sales for the nine months posted a 3 percent year on year decrease, falling to 300.13 billion rupees from an earlier 310.91 billion rupees. While the company saw a 4 percent reduction in royalty expenses, this was overshadowed by a 14 percent surge in core operating expenses which reached 96.74 billion rupees. This challenging cost environment caused the gross profit to contract by 11 percent, settling at 166.33 billion rupees against the 187.33 billion rupees achieved in the prior year.
Operational pressures were further compounded by a significant increase in exploration and prospecting activities. Expenditures in this segment jumped by 22 percent to a substantial 17.90 billion rupees, reflecting the company’s intensive efforts to discover new reserves. General and administrative expenses also witnessed a sharp rise of 28 percent, totaling 7.19 billion rupees. However, the most impactful headwind came from the finance and other income category, which suffered a 40 percent plunge to 38.50 billion rupees, down from 64.69 billion rupees. This massive drop in secondary income streams substantially reduced the buffer usually available to offset core operational costs.
In a more positive turn, some relief was found below the operating line as finance costs decreased by 15 percent to 3.81 billion rupees. Furthermore, the share of profit from associates grew by a healthy 21 percent, contributing 9.14 billion rupees to the total. Due to the lower pre tax earnings, the contribution to the workers profit participation fund also saw a 21 percent reduction. Despite these favorable shifts, the combination of shrinking gross margins and the collapse of secondary income pushed the profit before income tax down by 21 percent to 175.80 billion rupees.
The final financial outcome was significantly bolstered by a massive 35 percent reduction in income tax expenses, which fell to 60.54 billion rupees from the 93.49 billion rupees paid in the previous year. This substantial tax relief acted as a critical cushion, preventing a deeper slide in the net profit and allowing the company to contain the overall decline to 11 percent. As the leading player in Pakistans upstream sector, OGDC remains focused on balancing its aggressive exploration targets with the need for cost efficiency. The nine month results reflect a period of heavy reinvestment in energy security amid a shifting fiscal and secondary income landscape.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.