Gas prices are linked with a guaranteed rate of return on assets. Therefore, the initiation of new schemes provides more incentives to the public gas utilities on account of increase in prices. photo: file
ISLAMABAD:
Oil & Gas Development Company Limited (OGDC) posted net sales revenue of Rs192.830 billion and profit after tax of Rs73.019 billion, translating into earnings per share (EPS) of Rs16.98, for half year ended December 31, 2025.
The board of directors of the exploration and production company, in its meeting held on Monday, announced the results and declared a second interim cash dividend of Rs4.25 per share (42.50%), marking the highest-ever second quarterly dividend in the company’s history. This brings the cumulative interim dividend for half year to Rs7.75 per share.
The six-month results reflected the impact of forced production curtailments by Sui Northern Gas Pipelines Limited (SNGPL) and Uch Power due to system load constraints along with a lower average crude oil basket price. However, the impact was partly offset by higher realised gas prices and favourable exchange rate movements.
During the period under review, the company contributed Rs120 billion to the national exchequer through corporate tax, dividends, royalties and other government levies.
Its oil and gas production generated estimated foreign exchange savings of $1.4 billion through import substitution. Average daily net saleable production during the half year stood at 31,848 barrels of crude oil, 626 million cubic feet (mmcf) of natural gas and 636 tons of liquefied petroleum gas (LPG) compared with 31,477 barrels, 672 mmcf and 629 tons, respectively, in the corresponding period of last year. Production curtailments during the six-month period adversely affected daily net output by 3,384 barrels of oil, 152 mmcf of gas and 51 tons of LPG.
Operationally, OGDC drilled five wells, while sustained exploration efforts resulted in four oil and gas discoveries, further strengthening the company’s resource base. The company also secured petroleum exploration rights over eight offshore blocks in the October 2025 bidding round.
On the development front, the Jhal Magsi project was commissioned and is currently producing around 14 mmcfd of gas along with condensate, while the Dakhni Compression Project was completed ahead of schedule. Other key compression projects are progressing as planned.
The impact on sales revenue, amounting to Rs36.468 billion, primarily due to lower production volumes and reduced realised crude oil and LPG prices, was partially offset by higher realised gas prices and exchange rate movements. Collections improved significantly, with gas receivables collection reaching 156% and overall receivables collection standing at 125%, reversing the previous buildup trend.
