OGDC Profit Surges 53% to Rs. 58.5 Billion as Cash Reserve Hits Record High

Oil and Gas Development Firm Ltd. Noted first-quarter profit rose 53%, driven by higher oil and gas production and a surge in income earned on its growing cash pile.

Key points

• During the first quarter of fiscal year 2027, OGDC's recovery ratio improved to 99 percent, resulting in a decline in trade receivables to Rs.
• While return on assets reached 12.6 percent, return on equity stood at 14.8 percent.
• 5 billion in the ReKo Diq and PIOL front during the first quarter of fiscal year 2027, compared with Rs.
• Net sales rose 38 percent year over year to Rs.
• Other income rose 13 percent year over year to Rs.

Net income for the quarter concluded September climbed to Rs. 58.5 billion from Rs. 38.3 billion a year earlier, Pakistan's largest oil and gas explorer remarked in a filing to the Pakistan Stock Exchange. Earnings per share came in at Rs. 13.60 versus Rs. 8.91. The board declared a dividend of Rs. 5 per share.

Cash and short-term investments swelled to a record Rs. 365.5 billion, or Rs. 84.98 per share, from Rs. 222 billion, or Rs. 52 per share, a year ago. Other income climbed 13% year-on-year, supported by the returns on that balance, according to Arif Habib Ltd. AdalFi Intends Rs. 652 Million IPO to Expand Islamic, SME Lending. OGDC Revenue and Production Expansion.

Net sales rose 38 percent year over year to Rs. 132.4 billion, backed by 13 percent expansion in oil production and 17 percent expansion in gas production. A 26 percent growth in Arab Light costs to $90.07 per barrel, higher LPG revenues, and 11 percent production expansion additionally contributed to the company's topline performance.

Exploration expenses rose 55 percent year over year, mainly due to higher prospecting expenditures, despite no dry wells being documented during the quarter or in the corresponding period last year. Other income rose 13 percent year over year to Rs. 13.7 billion in the first quarter of fiscal year 2027. Improved Recovery Ratio & New Investment.

During the first quarter of fiscal year 2027, OGDC's recovery ratio improved to 99 percent, resulting in a decline in trade receivables to Rs. 595.5 billion from Rs. When the recovery ratio stood at 101 percent, 612 billion in the first quarter of fiscal year 2026. Petroleum Levies Adding Rs. 10 to Every Unit of Electricity.

OGDC additionally produced an extra investment of Rs. 5 billion in the ReKo Diq and PIOL front during the first quarter of fiscal year 2027, compared with Rs. 1 billion in the first quarter of fiscal year 2026. Alongside its results, the firm unveiled a dividend of Rs. 5 per share, taking its first quarter fiscal year 2027 payout ratio to 37 percent.

OGDC documented gross margins of 62.7 percent and net margins of 44.2 percent in the first quarter of fiscal year 2027, compared with 58.5 percent and 39.8 percent, respectively, in the same period last year.

While return on assets reached 12.6 percent, return on equity stood at 14.8 percent. The company's payout ratio was 36.8 percent, and its effective tax rate stood at 33.5 percent. Stay Connected with ProPakistani.

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