OGDC Posts Record Rs242.4bn Profit, Declares Highest-Ever Dividend

ISLAMABAD: Oil and Gas Development Company Limited has reported its highest-ever annual profit after tax, posting Rs242.374 billion for the financial year ended June 30, 2026, as Pakistan's largest listed energy producer delivered stronger earnings, production growth and record shareholder payouts. The company reported net sales of Rs449.191 billion, while earnings per share climbed to Rs56.35 from Rs39.50 in the preceding year, reflecting a 43% increase in profit.

OGDC's board approved a final cash dividend of Rs6 per share, equivalent to 60%, following interim dividends totalling Rs11 per share already distributed during the year. That takes the full-year payout to Rs17 per share, or 170%, which the company described as its highest-ever annual dividend. Under the announced timetable, shareholders appearing in the register on October 8 will qualify for the final entitlement, while the annual general meeting is scheduled for October 16 in Islamabad.

The state-controlled exploration and production company also remained a major contributor to Pakistan's public finances. OGDC said it transferred Rs187 billion to the national exchequer through corporate taxes, dividends, royalties and other government levies during the year. Its domestic oil and gas production generated estimated foreign-exchange savings of $3.31 billion by replacing imported energy, while improved recoveries helped the company collect Rs577 billion during the period, equivalent to a 107% collection rate.

The company's performance was also reflected in the equity market. OGDC said its share price increased 52% during the financial year, compared with a 44% rise in the benchmark KSE-100 Index. Its market capitalisation reached about Rs1.44 trillion as of June 30, reinforcing its position as Pakistan's largest listed company and underlining the importance of the energy producer for both government revenues and domestic investors.

Operationally, OGDC reported nine oil and gas discoveries during the year and added 120 million barrels of oil equivalent of proven and probable reserves. Its reserves replacement ratio reached 236%, the highest level in the company's history. OGDC also spudded 23 wells and drilled 58,333 metres, its strongest drilling performance in five years, while securing interests in 15 additional exploration blocks as part of efforts to expand its resource base.

Average daily net saleable production stood at 32,861 barrels of crude oil, 667 million cubic feet of gas and 670 tonnes of liquefied petroleum gas. Those figures represented year-on-year increases of 6.3% for crude oil, 2.3% for gas and 4.4% for LPG despite production curtailments. Gross crude output crossed 40,000 barrels per day in April for the first time in 27 quarters as the company increased production amid regional energy-security pressures.

Among the year's major operational developments was the start of production from Baragzai X-1, which OGDC said was producing about 5,968 barrels of oil, 17 million cubic feet of gas and 60 tonnes of LPG per day. The company also commissioned the Jhal Magsi development project, completed the Dakhni front-end compression project and continued enhanced recovery and field-revival work at Kunnar-Pasakhi and Rajian. Its longer-term portfolio includes shale and tight-gas initiatives, participation in the Reko Diq copper-gold project and Abu Dhabi Offshore Block-5, as well as work on geothermal resources where high-grade lithium in brine has been reported at Wahid Bakhsh-1.

OGDC's board praised management for the record financial and operational performance and expressed confidence that the company could continue strengthening Pakistan's energy security and expanding its reserves. The next key steps include payment of the final dividend following shareholder eligibility procedures, the October annual general meeting and continued execution of exploration, production and diversification projects. For Pakistan, stronger domestic energy output and reserve replacement could reduce pressure on imports while providing additional tax, royalty and dividend flows to the government.