ISLAMABAD: Oil and Gas Development Company Limited (OGDCL) has posted its highest-ever annual profit after tax of Rs242.374 billion for the financial year ended June 30, 2026, while declaring a record Rs17 per share dividend for shareholders.
The Board of Directors, which met on Friday, September 4, announced that the company’s profit after tax surged 43% compared with the preceding year, while net sales revenue reached Rs449.191 billion.
The company’s earnings per share also increased substantially to Rs56.35, compared with Rs39.50 recorded in the previous year, reflecting a strong improvement in its financial performance.
The Board declared a final cash dividend of Rs6 per share, equivalent to 60%, described as the highest-ever quarterly dividend in OGDCL’s history. This is in addition to Rs11 per share in interim dividends already paid during the year, taking the total annual payout to Rs17 per share, or 170%.
The record earnings came as OGDCL continued to play a major role in supporting Pakistan’s energy security and reducing reliance on imported energy. During the year, the company contributed Rs187 billion to the national exchequer through corporate taxes, dividends, royalties and other government levies.
OGDCL’s domestic oil and gas production also generated foreign exchange savings of $3.31 billion through import substitution, highlighting the company’s contribution to reducing the country’s energy import bill.
The company reported a significant improvement in collections during the year, with an overall collection rate of 107%. It collected Rs577 billion during the period, strengthening its cash generation and financial position.
OGDCL also delivered strong performance in the capital market. Its share price appreciated by 52% during the financial year, outperforming the 44% increase recorded by the KSE-100 Index.
The company’s market capitalisation stood at approximately Rs1.44 trillion as of June 30, 2026, reinforcing OGDCL’s position as the largest listed company in Pakistan.
On the exploration front, OGDCL reported major progress during the year, making nine oil and gas discoveries and adding 120 million barrels of oil equivalent (MMBOE) to its 2P reserves.
The company achieved a reserves replacement ratio of 236%, its highest-ever, indicating that additions to its recoverable reserves substantially exceeded depletion during the year.
OGDCL spudded 23 wells and drilled 58,333 metres during the year, both representing the highest levels recorded by the company over the last five years. It also secured interests in 15 additional exploration blocks as part of efforts to expand its resource base.
The company’s average daily net saleable production increased across its major product categories. Crude oil production averaged 32,861 barrels per day, up 6.3% year-on-year, while gas production reached 667 million cubic feet per day, an increase of 2.3%.
LPG production also rose 4.4% to an average of 670 tons per day, despite continued production curtailments.
Amid growing concerns over regional energy security and Pakistan’s persistent energy demand-supply gap, OGDCL ramped up production during the year. Its gross crude oil production surpassed 40,000 barrels per day in April 2026, marking the first time in 27 quarters that the company crossed this threshold.
A major operational milestone was achieved with the commencement of production from Baragzai X-1 in April 2026. The well is currently producing approximately 5,968 barrels of oil, 17 million cubic feet of gas and 60 tons of LPG per day.
According to the company, the cumulative potential of the well’s five producing formations is estimated at 15,000 barrels of oil and 45 million cubic feet of gas per day, pointing to further production potential from the asset.
OGDCL also commissioned the Jhal Magsi development project and completed the Dakhni front-end compression project during the year, supporting efforts to enhance production from existing assets.
The company continued to pursue enhanced oil recovery at Kunnar-Pasakhi, revitalisation of the Rajian heavy-oil field and assessment of mature assets as part of its long-term strategy to maximise recovery from existing fields.
It also advanced its shale and tight-gas initiatives and successfully tested geothermal water at Wahid Bakhsh-1, where the company confirmed Pakistan’s first major discovery of high-grade lithium in geothermal brine.
OGDCL further expanded its portfolio through participation in the Reko Diq copper-gold project and Abu Dhabi Offshore Block-5, reflecting a broader strategy to diversify beyond conventional oil and gas and develop a wider energy and resources portfolio.
The company also strengthened its environmental, social and governance framework during the year by introducing its first ESG Strategy and publishing its first climate disclosures aligned with the Task Force on Climate-related Financial Disclosures.
OGDCL became the first Pakistani company to join the United Nations Environment Programme’s Oil and Gas Methane Partnership 2.0, while also reporting zero fatalities during the year.
Its contribution to community development received further recognition when the Pakistan Centre for Philanthropy ranked OGDCL first in the Corporate Philanthropy Awards 2025.
The Board of Directors appreciated management’s efforts in delivering record financial results, improving operational performance and advancing the company’s exploration and diversification strategy.
The Board expressed confidence that OGDCL would continue to strengthen Pakistan’s energy security, replenish and expand its resource base and create sustainable long-term value for shareholders and other stakeholders.