OGDCL posts highest-ever annual profit, dividend

ISLAMABAD: The Board of Directors of Oil & Gas Development Company Limited (OGDCL), at a meeting held on Friday, announced the company’s financial results for the year ended June 30, 2026, posting its highest-ever profit after tax of Rs242.37 billion, representing an increase of 43 percent over the previous year.

The OGDCL recorded net sales revenue of Rs449.191 billion and posted its highest-ever profit after tax of Rs242.374 billion, representing an increase of 43 percent over the preceding year. Earnings per share (EPS) rose to Rs56.35 from Rs39.50 a year earlier.

The board declared a final cash dividend of Rs6 per share (60 percent), the highest-ever quarterly dividend in the company’s history. This is in addition to interim dividends of Rs11 per share already paid, taking the total annual payout to Rs17 per share (170 percent), the highest-ever annual dividend declared by the company.

During the year, OGDCL contributed Rs187 billion to the national exchequer through corporate tax, dividends, royalties and other government levies. Its oil and gas production generated foreign exchange savings of USD 3.31 billion through import substitution. Improved recoveries resulted in an overall collection rate of 107 percent, with Rs577 billion collected during the year.

The company’s share price appreciated by 52 percent during the fiscal year, out-performing the 44 percent increase in the KSE-100 Index. OGDCL’s market capitalisation reached approximately Rs1.44 trillion as of June 30, 2026, reinforcing its position as the largest listed company in Pakistan.

The OGDCL also achieved significant milestones in exploration and drilling during the year. The company made nine oil and gas discoveries, adding 120 million barrels of oil equivalent (MMBOE) in 2P reserves and achieving a reserves replacement ratio of 236 percent, the highest in its history. It spudded 23 wells and drilled 58,333 metres, the highest levels recorded in the past five years, while securing interests in 15 additional exploration blocks.

Average daily net saleable production stood at 32,861 barrels of crude oil, 667 million cubic feet (MMcf) of gas and 670 tonnes of LPG, representing year-on-year increases of 6.3 percent, 2.3 percent and 4.4 percent, respectively, despite continued production curtailments.

Amid the regional energy security situation, OGDCL successfully ramped up production to help mitigate the country’s energy demand-supply gap, with gross crude oil production surpassing 40,000 barrels per day in April 2026 for the first time in 27 quarters.

A key operational milestone was the commencement of production from Baragzai X-1 in April 2026. The well is currently producing approximately 5,968 barrels of oil, 17 MMcf of gas, and 60 tonnes of LPG per day. The cumulative potential of its five producing formations is estimated at 15,000 barrels of oil and 45 MMcf of gas per day. The company also commissioned the Jhal Magsi development project and completed the Dakhni front-end compression project during the year.

The OGDCL continued to advance its long-term growth and diversification strategy through enhanced oil recovery at Kunnar-Pasakhi, revitalisation of the Rajian heavy-oil field and assessment of mature assets. It also progressed its shale and tight-gas initiatives and successfully tested geothermal water at Wahid Bakhsh-1, where Pakistan’s first major discovery of high-grade lithium in geothermal brine was confirmed.

The company’s participation in the Reko Diq copper-gold project and Abu Dhabi Offshore Block-5 further supports its strategy of developing a broader energy and resources portfolio.

The OGDCL also strengthened its environmental, social, and governance (ESG) framework by introducing its first ESG Strategy and publishing its first climate disclosures aligned with the Task Force on Climate-related Financial Disclosures. The company became the first Pakistani company to join the United Nations Environment Programme’s Oil and Gas Methane Partnership 2.0 and achieved zero fatalities during the year.

Its contribution to community development was recognised by the Pakistan Centre for Philanthropy, which ranked OGDCL first in the Corporate Philanthropy Awards 2025.

The Board appreciated management’s efforts in delivering record financial results, strengthening operational performance and advancing the company’s exploration and diversification agenda. It expressed confidence that OGDCL would continue to reinforce Pakistan’s energy security, replenish and expand its resource base, and deliver sustainable long-term value to its shareholders and other stakeholders.

Copyright Business Recorder, 2026