OGDC Records 43% Profit Growth in FY26

Oil and Gas Development Firm Limited (PSX: OGDC) noted its highest-ever dividend of Rs.

Key points

• 149.1 billion during 4QFY26, up 65 percent YoY and 39 percent Quarter-on-Quarter (QoQ).
• The company's receivables recovery ratio improved to 103 percent in 4QFY26 from 86 percent in 3QFY26, reflecting stronger recoveries from Sui firms.
• 39.5 in FY25, backed by 25 percent and 17 percent YoY expansion in oil and gas production, respectively.
• 29.55 per share in the fourth quarter of FY26 (4QFY26), almost three times the Rs.
• The firm is at present trading at estimated price-to-earnings ratios of 6.1 times for FY27 and 5.2 times for FY28.

Oil and Gas Development Firm Limited (PSX: OGDC) noted its highest-ever dividend of Rs. While earnings per share (EPS) surged 42.8 percent Year-on-Year (YoY) to Rs, 17 per share for fiscal year 2026 (FY26). 56.35.

Meanwhile, the company's EPS rose from Rs. 39.5 in FY25, backed by 25 percent and 17 percent YoY expansion in oil and gas production, respectively. DPS rose to Rs. 17.0 in FY26, up from Rs. 15.1 in FY25, an growth of 12.6 percent YoY.

Earnings were additionally boosted by a one-off reversal of the super tax provision, stated Arif Habib Limited. Refineries Warn Lower Margins Could Hurt Upgrade Intends.

OGDC posted quarterly earnings of Rs. 29.55 per share in the fourth quarter of FY26 (4QFY26), almost three times the Rs. 10.0 per share recorded in the same quarter last year.

Meanwhile, the firm noted net sales of Rs. 149.1 billion during 4QFY26, up 65 percent YoY and 39 percent Quarter-on-Quarter (QoQ). According to Topline Securities, the growth was attributed to the start of production from the Baragzai field and higher crude oil costs.

For the full year, OGDC's revenue rose 12 percent YoY to Rs. 449.2 billion.

Royalty expenses rose 699 percent YoY to Rs. 17.2 billion during the quarter, with royalties accounting for 12 percent of net sales.

Exploration costs rose 2.6 times YoY and 1.8 times QoQ to Rs. 10.9 billion in 4QFY26 due to two dry wells, Chak-203 and Saidpur.

Operating expenditures (OPEX) rose 45 percent YoY to Rs. 50.9 billion. OPEX per barrel of oil equivalent (BOE) stood at US$ 11.6, compared with US$ 10.0 in 4QFY25 and US$ 7.6 in 3QFY26.

OGDC additionally recorded a Rs. 44 billion tax reversal during the quarter after the Federal Constitutional Court's decision on the super tax. This brought the company's Effective Tax Rate (ETR) for FY26 down to 6 percent from 39 percent in FY25.

Notably, the company's receivables recovery ratio improved to 103 percent in 4QFY26 from 86 percent in 3QFY26, reflecting stronger recoveries from Sui firms. The ratio has remained above 100 percent for two consecutive years.

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OGDC declared a final cash dividend of Rs6 per share for 4QFY26, taking its total FY26 payout to a record Rs. 17 per share. This represents a payout ratio of 30 percent, compared with 38 percent in FY25.

For context, the firm is at present trading at estimated price-to-earnings ratios of 6.1 times for FY27 and 5.2 times for FY28. Stay Connected with ProPakistani.

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In short, OGDC Records 43% Profit Growth in FY26 is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.