OGDC earns Rs73 billion in 1HFY26, declares Rs7.75 per share dividend

ISLAMABAD: Oil & Gas Development Company Limited (OGDC) posted a profit after tax of Rs 73.019 billion for the half year ended December 31, 2025, and announced its highest-ever second-quarter dividend of Rs 4.25 per share, taking the cumulative half-year payout to a record Rs 7.75 per share.

The Board of Directors, in its meeting held on February 23, 2026, approved the financial results and declared a second interim cash dividend of Rs 4.25 per share (42.50%), marking the highest second-quarter dividend in the company’s history. The total interim dividend for the half year now stands at Rs 7.75 per share, the highest half-year payout ever announced by OGDC.

During the July–December period, OGDC recorded net sales revenue of Rs 192.830 billion and earnings per share (EPS) of Rs 16.98. The results reflected the impact of forced production curtailments by SNGPL and UPL due to system load constraints, as well as a lower average crude oil basket price. However, the adverse impact was partly offset by higher realized gas prices and exchange rate movements.

The company contributed Rs 120 billion to the national exchequer in the form of corporate taxes, dividends, royalties, and other levies. Its oil and gas output also generated estimated foreign exchange savings of $1.4 billion through import substitution, underscoring its strategic importance to the country’s energy security.

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, compared to 31,477 barrels of oil, 672 MMcf of gas, and 629 tons of LPG in the corresponding period last year. Production curtailments during the period reduced daily net output by 3,384 barrels of oil, 152 MMcf of gas, and 51 tons of LPG.

Operationally, OGDC spudded five wells during the reporting period and made four oil and gas discoveries, further strengthening its resource base. The company also secured petroleum exploration rights over eight offshore blocks in the October 2025 bidding round, expanding its exploration footprint.

On the development side, the Jhal Magsi Project was successfully commissioned and is currently producing around 14 MMcfd of gas along with condensate. The Dakhni Compression Project was completed ahead of schedule, while other key compression initiatives are progressing as planned.

The company said the impact on sales revenue, amounting to Rs 36.468 billion, was primarily due to lower production volumes and reduced realized crude oil and LPG prices and was partially offset by higher realized gas prices and exchange rate movements. Collections showed significant improvement, with gas receivables reaching 156% and overall receivables collection standing at 125%, reversing the previous buildup trend.

OGDC is also reinforcing its environmental, social, and governance (ESG) strategy by advancing climate-related disclosures and integrating ESG considerations across its operations and value chain.

The Board appreciated management’s continued focus on operational performance, financial discipline, and shareholder returns, which enabled the declaration of record quarterly and half-year dividends while maintaining the company’s leadership position in Pakistan’s exploration and production sector.