OGDC Profit Jumps 53pc to Rs58.5 Billion in First Quarter

Oil and Gas Development Company Ltd (OGDC) reported an OGDC profit Rs58.5 billion for the first quarter of fiscal year 2027, up 53 per cent from a year earlier. The rise came from higher oil and gas production and stronger income from the company’s growing cash pile.

Net income for the quarter ended in September rose to Rs58.5 billion from Rs38.3 billion in the same quarter last year. Earnings per share stood at Rs13.60, against Rs8.91 a year earlier. The board declared a dividend of Rs5 per share.

OGDC is Pakistan’s largest oil and gas explorer, and its results are watched as a guide to the energy sector. The company filed its results with the Pakistan Stock Exchange.

OGDC profit Rs58.5 billion driven by production and prices

Net sales rose 38 per cent year on year to Rs132.4 billion. Oil production grew 13 per cent and gas production grew 17 per cent, while overall production rose 11 per cent.

Prices helped too. Arab Light crude averaged $90.07 per barrel during the quarter, up 26 per cent from a year earlier. Higher liquefied petroleum gas revenues also supported the top line.

Other income rose 13 per cent to Rs13.7 billion. Arif Habib Ltd linked the gain to returns on the company’s cash balance, which has grown sharply over the past year.

Cash and short-term investments reached a record Rs365.5 billion, or Rs84.98 per share. A year earlier, the figure was Rs222 billion, or Rs52 per share.

Margins, receivables and new investment

Gross margins improved to 62.7 per cent from 58.5 per cent a year earlier. Net margins rose to 44.2 per cent from 39.8 per cent.

Return on equity stood at 14.8 per cent, while return on assets reached 12.6 per cent. The effective tax rate was 33.5 per cent.

The company’s recovery ratio improved to 99 per cent, from 101 per cent in the same quarter last year. Trade receivables fell to Rs595.5 billion from Rs612 billion.

Exploration expenses rose 55 per cent year on year, mainly due to higher prospecting spending. No dry wells were reported during the quarter, or in the same period last year.

OGDC also invested Rs5 billion in the ReKo Diq and Pakistan International Oil Ltd front during the quarter, against Rs1 billion a year earlier. The dividend of Rs5 per share takes the first-quarter payout ratio to about 37 per cent.

What the result means for the energy sector

The result points to a quarter where volume growth and price gains worked together. Production rose across oil and gas, and the cash balance gave the company a second source of income through returns on its investments.

For readers, the cash figure matters because it shapes what OGDC can fund next. A record Rs365.5 billion in cash and short-term investments gives the explorer room to sustain exploration spending, which rose sharply in the quarter, and to keep paying dividends.

The energy sector has seen mixed signals in recent weeks. Feature Pakistan reported on the stock market’s fourth straight session of gains, and Feature Pakistan reported on a narrowing fiscal surplus in the first quarter of fiscal year 2027. OGDC’s result adds a company-level picture to that wider trend.

The next test for OGDC will be whether production growth holds in the second quarter, and whether prices stay near the levels seen in the September quarter. Exploration spending is already rising, so investors will also watch for new discoveries and for progress on the ReKo Diq front, where investment increased fivefold from a year earlier.

Frequently asked questions

How much profit did OGDC report?

OGDC reported net income of Rs58.5 billion for the first quarter of fiscal year 2027, up 53 per cent from Rs38.3 billion a year earlier.

What drove the increase?

Oil production rose 13 per cent, gas production rose 17 per cent, Arab Light prices averaged $90.07 per barrel, and other income rose 13 per cent to Rs13.7 billion.

What dividend did OGDC announce?

The board declared a dividend of Rs5 per share for the quarter.

How large is OGDC’s cash balance?

Cash and short-term investments reached a record Rs365.5 billion, or Rs84.98 per share, against Rs222 billion a year earlier.