ISLAMABAD – Oil and Gas Development Company Limited (OGDCL), Pakistan’s largest exploration and production (E&P) company, reported a consolidated profit of Rs169.9 billion for the year ended June 30, 2025, down nearly 19% from Rs208.9 billion in the previous year.
This decline resulted in earnings per share (EPS) of Rs39.50, compared to Rs48.59 in FY24, according to the company’s financial results disclosed to the Pakistan Stock Exchange (PSX) on Tuesday.
The drop in profitability was mainly driven by a decrease in production and net sales. OGDCL’s estimated oil and gas output for 4QFY25 fell by 12% YoY for oil, reaching 28.7k barrels per day (bpd), and 11% YoY for gas, amounting to 637 million cubic feet per day (mmcfd). These declines were reflected in a reduction in net sales, which stood at Rs401.1 billion in FY25, down from Rs463.7 billion in FY24, a drop of over 13%.
Gross profit also saw a significant contraction of 18%, falling to Rs231.6 billion in FY25 from Rs283.3 billion in FY24. As a result, the company’s profit margin decreased to 58% in FY25, compared to 61% in FY24. Operating expenses for the fourth quarter of FY25 amounted to Rs35.8 billion, a 3% decrease YoY.
According to AKD Research, exploration costs increased, totalling Rs4.1 billion for 4QFY25, up 1% YoY because the company was involved in drilling multiple wells during the quarter, including Bettani Deep-1, Baragzai X-1, Faakir-1, and Chak263-1, and also conducted 2D and 3D seismic surveys as part of its ongoing exploration activities
Despite the decline in profits, the Board of Directors declared a final cash dividend for FY25 at Rs5 per share, or 50%. This, along with the interim dividends already paid at Rs10.05 per share (100.50%), represents the highest-ever dividend announced by the company.
The decline in profitability was primarily driven by a decrease in net sales, which fell to Rs401.1 billion in FY25 from Rs463.7 billion in FY24, reflecting a drop of over 13%.
Gross profit also saw a significant contraction of 18%, dropping to Rs231.6 billion in FY25 from Rs283.3 billion in the prior year. As a result, the company’s profit margin decreased to 58% in FY25, compared to 61% in FY24.
On a positive note, finance and other income surged to Rs81.8 billion, nearly doubling from Rs41.3 billion a year earlier, which helped support the bottom line. However, exploration and prospecting expenditure rose by 49%, reaching Rs18.7 billion, up from Rs12.6 billion in FY24.
Operating costs stood at Rs120.2 billion, slightly lower than the previous year’s Rs123.5 billion, while finance costs decreased to Rs5.8 billion from Rs7.1 billion.
OGDCL’s share of profit from associates stood at Rs12.6 billion in FY25, a slight decrease from Rs13.2 billion in FY24.
Before taxation, OGDCL earned Rs279.3 billion, down from Rs293.8 billion in the previous year. After accounting for Rs109.4 billion in taxes, the company’s net profit for the year settled at Rs169.9 billion.
