ISLAMABAD: Oil and Gas Development Company Limited (OGDC) has reported a 53% increase in first-quarter profit to Rs58.5 billion and declared its highest-ever first-quarter dividend of Rs5 per share, as higher production and stronger realised prices boosted earnings.
The company’s profit after tax increased to Rs58.5 billion for the quarter ended September 30, 2026, compared with Rs38.3 billion in the corresponding period last year. Earnings per share rose to Rs13.60 from Rs8.91.
Net sales revenue grew 38% to Rs132.4 billion from Rs96.2 billion a year earlier, reflecting higher production volumes and improved realised prices, although the company continued to face production curtailments imposed by gas utilities and the impact of rupee appreciation against the US dollar.
The Board of Directors approved a first interim cash dividend of Rs5 per share, equivalent to 50%, compared with Rs3.50 per share in the same quarter last year. The company described it as the highest first-quarter dividend in its history.
OGDC’s operational performance also improved across all three major production streams. Average daily net saleable crude oil production increased 13.3% to 35,494 barrels, natural gas production rose 14.2% to 732 million cubic feet (MMcf), while LPG output grew 10.5% to 696 tonnes per day.
In the corresponding quarter last year, the company had recorded average daily production of 31,315 barrels of crude oil, 641 MMcf of natural gas and 630 tonnes of LPG.
Production growth was supported by the connection of four new wells — Maru-3, Sono-10, Chak 63-5 and Bobi-11 — to the production gathering system. The installation of electrical submersible pumps at four wells added 1,630 barrels per day to crude oil production, while the company completed 26 workover jobs to sustain output from mature fields and offset natural production decline.
However, forced production curtailments by Sui Northern Gas Pipelines Limited (SNGPL) and UPL continued to restrict the company’s output, resulting in an estimated Rs9.7 billion loss in sales revenue during the quarter.
The curtailments reduced average daily net production by 1,254 barrels of crude oil, 94 MMcf of natural gas and five tonnes of LPG. The estimated revenue loss was lower than Rs19.3 billion recorded in the corresponding quarter last year.
OGDC said that without these restrictions, its average daily net production would have reached 36,748 barrels of crude oil, 826 MMcf of natural gas and 701 tonnes of LPG. The figures highlight the extent to which constraints in gas offtake continue to affect the production and revenue potential of Pakistan’s largest exploration and production company.
Higher realised prices also supported earnings. The average realised crude oil price increased to $74.90 per barrel from $57.61, while the realised gas price rose to Rs796.08 per thousand cubic feet (Mcf) from Rs718.38 in the corresponding period last year.
The company contributed Rs82 billion to the national exchequer during the quarter through taxes, dividends, royalties and levies. It also estimated that its indigenous oil and gas production saved the country $1.32 billion in foreign exchange by reducing the need for imported energy.
On the exploration front, OGDC acquired 31 line-kilometres of 2D seismic data and 213 square kilometres of 3D seismic data during the quarter. However, seismic operations were affected by security constraints, adverse weather conditions and supply-chain disruptions.
The company spudded two wells, Bitrism NW-1 and Nahiyoon-1, and recorded total drilling footage of 17,348 metres. Nahiyoon-1, a horizontal pilot well targeting the Sembar shale formation, represents OGDC’s first step towards assessing Pakistan’s unconventional gas potential. The company is also conducting a regional tight gas evaluation study.
OGDC is simultaneously investing in projects aimed at increasing production and improving recovery from existing fields. Construction and mechanical work on the Uch Compression Project has been completed, with commissioning underway and performance testing scheduled to be completed in stages by December 2026.
The KPD-TAY Compression Project and Kunnar-Pasakhi Water Injection Project are also at an advanced stage, with both targeted for completion by March 2027. The water injection project, the company’s first step towards systematic enhanced oil recovery, is expected to improve recovery by 8-10% and extend the economic life of the fields by seven to eight years.
Work is also progressing on the Rajian Heavy Oil Facility Project and a mature asset revitalisation initiative aimed at recovering additional hydrocarbons and extending the productive life of existing assets.
Beyond Pakistan, OGDC is advancing exploration and development activities in Abu Dhabi Offshore Block-5. Exploration and appraisal studies are underway, alongside front-end engineering design for the development of the Bu Dana, Al Bateen and Al Manhal fields, with first production targeted for 2028.
At Reko Diq, the project operator is reviewing security conditions, capital requirements, financing, scope and timelines. The review could lead to changes in estimated project costs and schedules. OGDC said it remained engaged with the operator, co-shareholders and the government regarding its strategic investment in the project.
The company has also reported preliminary findings of lithium in geothermal brine at its Wahid Bakhsh-1 well. Laboratory analysis conducted by the Pakistan Institute of Nuclear Science and Technology (PINSTECH) recorded a lithium concentration of 291 milligrams per litre, which OGDC said was comparable to concentrations found in leading geothermal lithium brines internationally.
The company cautioned that the findings were preliminary, with further assessment of lithium potential in adjacent water formations and the commercial viability of geothermal resources still underway.
In a further development, OGDC’s Board approved the company’s first sustainability-related financial disclosures under IFRS S1 and IFRS S2 standards. The company also introduced directorate-wise performance indicators and measurable targets under its environmental, social and governance (ESG) strategy.
OGDC also secured the top position among 104 listed companies across 28 sectors in Transparency International Pakistan’s Transparency in Corporate Reporting (TRAC) Assessment 2026, with an overall score of 92.71%. According to the company, it achieved full marks in anti-corruption programmes, organisational transparency, domestic financial reporting, gender, disability and non-discrimination, as well as the separately assessed procurement category.
Commenting on the results, OGDC Chairman Zafar Masud said the company had delivered growth in oil, gas and LPG production, maintained 100% collections against billings and announced a record first-quarter dividend.
He said the dividend decision reflected the Board’s confidence in the company’s cash generation while maintaining its capacity to invest in compression, water injection, drilling and new areas of exploration.