Pakistan's largest oil and gas explorer, Oil and Gas Development Company Ltd., stated that its first-quarter profit jumped 53% due to increased petroleum output and higher returns from its expanding cash reserves.
In a notification sent to the Pakistan Stock Exchange, the firm reported that net income for the period ending in September grew to Rs. 58.5 billion, up from Rs. 38.3 billion in the prior year. Earnings per share shifted to Rs. 13.60 compared to Rs. 8.91, while directors approved a dividend of Rs. 5 per share.
Cash reserves and short-term investments reached an all-time high of Rs. 365.5 billion, equating to Rs. 84.98 per share, moving up from Rs. 222 billion or Rs. 52 per share a year prior. Arif Habib Ltd. noted that other income rose 13% annually, aided by earnings from this cash total.
OGDC Revenue and Production Growth
Net sales climbed 38 percent annually to reach Rs. 132.4 billion, driven by a 13 percent rise in oil output and a 17 percent increase in gas production. Additional drivers for the company revenue included an 11 percent production growth, higher liquefied petroleum gas revenue, and a 26 percent jump in Arab Light prices to $90.07 per barrel.
Exploration costs jumped 55 percent compared to the previous year, driven primarily by higher prospecting outlays, even though no dry wells were logged during the quarter or in the corresponding period of the prior year. First-quarter other income for fiscal year 2027 rose 13 percent annually to Rs. 13.7 billion.
Improved Recovery Ratio & New Investment
The company recovery ratio rose to 99 percent during the first quarter of fiscal year 2027, which brought trade receivables down to Rs. 595.5 billion from Rs. 612 billion recorded in the first quarter of fiscal year 2026, when the recovery ratio was 101 percent.
OGDC additionally injected Rs. 5 billion into the ReKo Diq and PIOL front during the first quarter of fiscal year 2027, marking an increase from Rs. 1 billion spent in the first quarter of fiscal year 2026. Together with the financial figures, the company declared a dividend of Rs. 5 per share, setting its first quarter fiscal year 2027 payout ratio at 37 percent.
During the first quarter of fiscal year 2027, the enterprise posted gross margins of 62.7 percent and net margins of 44.2 percent, shifting from 58.5 percent and 39.8 percent respectively during the same timeframe last year.
The return on equity was recorded at 14.8 percent, and the return on assets hit 12.6 percent. The company payout ratio registered at 36.8 percent alongside an effective tax rate of 33.5 percent.
