OGDCL announces highest first-quarter dividend

Company posts net sales revenue of Rs96.192b and profit after tax of Rs38.305b

The board of directors of Oil & Gas Development Company Limited has declared first interim cash dividend of Rs3.50 per share — the highest first-quarter dividend in the company’s history.

The announcement was made during a meeting of the board, which also approved the financial results for the quarter ended September 30, 2025. The OGDCL posted net sales revenue of Rs96.192 billion and profit after tax amounting to Rs38.305 billion, translating into earnings per share (EPS) of Rs8.91.

During the period, the company contributed Rs64 billion to the national exchequer through corporate tax and government levies, while its oil and gas production contributed foreign exchange savings of $703 million as import substitution.

The quarter’s results reflected the combined impact of forced production curtailments by SNGPL and UPL and a lower average crude oil basket price, partly offset by a higher realised gas price and appreciation of the US dollar against rupee.

Average daily net saleable production during the quarter stood at 31,315 barrels of crude oil, 641 MMcf of natural gas, and 630 tons of LPG compared with 31,768 barrels, 699 MMcf, and 618 tons, respectively, in the corresponding period last year.

In the absence of forced curtailments, average daily saleable production would have been 34,038 barrels of oil, 783 MMcf of gas, and 698 tons of LPG. Production was supported by the injection of four new wells - Aradin-1, Soghri North-1, Jhal Magsi South-1 and South-2 - along with the installation of Electrical Submersible Pumps (ESPs) at Rajian-5 and Pasakhi-11, resulting in an incremental crude oil increase of over 3,100 barrels per day.

In total, 24 workover jobs were executed to optimise field performance and arrest natural decline. During the quarter, the OGDCL continued to demonstrate exploration strength, acquiring 233 line-km of 2D and 110 sq. km of 3D seismic data.

Using in-house resources, the Company processed and reprocessed an additional 236 line-km of 2D and 1,590 sq. km of 3D seismic data. Sustained exploration efforts resulted in two gas-condensate discoveries - Chakar-1 in District Tando Allah Yar and Bitrism East-1 in District Khairpur, Sindh - with a combined expected potential of 965 barrels per day of oil and 23 million cubic feet per day of gas.

The 2P reserves of these discoveries are estimated at 1.65 million stock tank barrels (MMSTB) of oil and 39.34 billion cubic feet (bcf) of gas, equivalent to approximately 9.24 million barrels of oil equivalent (MMBOE).

The company maintained momentum on key development projects. Jhal Magsi Project in Balochistan has been successfully commissioned and is currently producing around 14 MMcfd of gas and 45 barrels per day of condensate.

Construction and installation activities for the Dakhni Compression Project in Punjab and the KPD-TAY Compression Project in Sindh are on schedule, with completion expected in January 2026 and April 2026 respectively.

The Uch Compression Project in Balochistan, targeted for completion by June 2026, is advancing as per plan to sustain gas supply under the gas sales agreement with UPL.

The impact on sales revenue, primarily due to forced production curtailment amounting to Rs16.7 billion and a lower average realised crude oil price of $57.61 per barrel, was partially offset by an increase in the average realised gas price to Rs718.38 per Mcf and a higher rupee-dollar parity rate. (Rs282.96 per dollar).

Collections improved considerably, with gas receivables collection at 129% and overall receivables collection at 109%, reversing the previous trend of build-up. The company maintained a strong current ratio of 10.44 times compared with 8.16 times in the same period last year, reflecting improved liquidity and balance sheet strength.

During the quarter, the OGDCL continued to advance its business diversification agenda. The company’s $715 million pro-rata funding commitment for the Reko Diq copper-gold project has been approved by the board and shareholders, with early-site works in progress and first production targeted for FY 2028-29. Appraisal and exploration activities in Abu Dhabi Offshore Block-5 are progressing, with first production anticipated in the second half of 2028.

Meanwhile, the company also qualified to participate in Libya’s Bid Round 25 and is carrying out technical evaluations ahead of the February 2026 submission deadline. The company is further pursuing tight gas monetisation, geothermal collaboration with Schlumberger, and renewable energy projects through its subsidiary, OGDC Renewable Energy Limited.