OGDCL announces record Rs242.4bn profit for fiscal year 2025-26

ISLAMABAD: Oil and Gas Development Company Limited (OGDCL) announced a record profit of Rs242.4 billion for the fiscal year 2025-26, marking a 43% increase from the previous year. This surge was driven by the global rise in oil prices.

For the first nine months of the fiscal year (July 2025 to March 2026), OGDCL's profit after tax was Rs115 billion, down from Rs130 billion in the same period of FY2025, reflecting a 12% decline. However, the global price increase following the US-Israel conflict with Iran generated around Rs128 billion in post-tax profit, exceeding the combined profit of the first three quarters. This resulted in the company's highest quarterly profit.

The windfall pushed the full-year profit after tax to Rs242.4 billion in FY2025-26, up from Rs169 billion in FY2024-25. OGDCL also discovered high-grade lithium in geothermal brine in Khairpur district, Sindh, during the fiscal year.

The board of directors approved the financial results, showing net sales revenue of Rs449.191 billion and the highest-ever profit after tax of Rs242.374 billion, a 43% increase over the previous year. Earnings per share rose to Rs56.35 from Rs39.50 a year earlier. The board declared a final cash dividend of Rs6 per share (60%), the highest-ever quarterly dividend, in addition to interim dividends of Rs11 per share, bringing the total payout for the year to Rs17 per share (170%).

During the year, OGDCL contributed Rs187 billion to the national exchequer through corporate tax, dividends, royalties, and other levies. Its oil and gas production generated estimated foreign exchange savings of $3.31 billion through import substitution. Improved recoveries led to a collection rate of 107%, with Rs577 billion collected during the year.

The company's share price increased by 52% during the fiscal year, outperforming the 44% rise in the KSE-100 Index. OGDCL's market capitalisation reached approximately Rs1.44 trillion as of 30 June 2026, reinforcing its position as Pakistan's largest listed company.

OGDCL made significant exploration and drilling achievements, with nine oil and gas discoveries adding 120 million barrels of oil equivalent (MMBOE) in proven and probable reserves. It achieved a reserves replacement ratio of 236%, the highest in its history. The company spudded 23 wells and drilled 58,333 metres, the highest levels in five years, while securing interests in 15 additional exploration blocks.

Average daily net saleable production was 32,861 barrels of crude oil, 667 MMcf of gas, and 670 tonnes of LPG, showing year-on-year increases of 6.3%, 2.3%, and 4.4%, respectively. Despite production curtailments, OGDCL 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 milestone was bringing Baragzai X-1 into production in April 2026. The well is 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.

OGDCL advanced its long-term growth and diversification agenda through enhanced oil recovery at Kunnar-Pasakhi, revitalisation of the Rajian heavy-oil field, and assessment of mature assets. It progressed its shale and tight-gas initiatives and successfully tested geothermal water at Wahid Bakhsh-1, confirming Pakistan's first major discovery of high-grade lithium in geothermal brine. Its participation in the Reko Diq copper-gold project and Abu Dhabi Offshore Block-5 supported its strategy of developing a broader energy and resources portfolio.

OGDCL strengthened its environmental, social, and governance framework by introducing its first ESG Strategy and publishing its first climate disclosures aligned with the Task Force on Climate-related Financial Disclosures. It 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.