Oil and Gas Development Company Limited (OGDCL), the country’s largest exploration and production (E&P) company, announced a consolidated profit of Rs169.9 billion for the year ended June 30, 2025, down from Rs208.9 billion recorded in the previous year, registering a decline of nearly 19%.
This translated into earnings per share (EPS) of Rs39.50, compared to Rs48.59 in FY24, showed the E&P’s latest financial results provided to the Pakistan Stock Exchange (PSX) on Tuesday.
“Earnings higher than expectations due to lower than expected exploration costs and effective tax rate,” said Topline Securities.
The Board of Directors also announced a final cash dividend for the year 2024-25 at Rs5 per share, i.e. 50%. This is in addition to interim dividends already paid at Rs10.05 per share, i.e. 100.50%. This is the highest ever dividend announced by the company.
The decline in profitability was largely due to a drop in net sales, which stood at Rs401.1 billion in FY25, compared to Rs463.7 billion in FY24, registering a drop of over 13%.
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Gross profit also contracted significantly by 18% to Rs231.6 billion in FY25, from Rs283.3 billion in the prior year. Consequently, the company’s profit margin lowered to 58% in FY25, as compared to 61% in FY24.
Finance and other income, however, surged to Rs81.8 billion, almost doubling i.e. 98% from Rs41.3 billion a year earlier, providing some support to the bottom line. Exploration and prospecting expenditure increased to Rs18.7 billion, versus Rs12.6 billion in FY24, a jump of 49%.
On the expense side, operating costs were reported at Rs120.2 billion, slightly lower than Rs123.5 billion in the preceding year, while finance cost fell to Rs5.8 billion from Rs7.1 billion.
The company’s share of profit in associates stood at Rs12.6 billion in FY25, slightly lower than Rs13.2 billion in the same period last year.
Before taxation, OGDCL earned Rs279.3 billion, down from Rs293.8 billion in FY24. After accounting for taxation of Rs109.4 billion, net profit for the year settled at Rs169.9 billion.
OGDCL was incorporated on 23 October 1997 under the Companies Ordinance, 1984. The company was established to undertake exploration and development of oil and gas resources, including production and sale of oil and gas and related activities formerly carried on by Oil and Gas Development Corporation, which was established in 1961.
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