OGDC Profit Surges 53% to Rs58.5bn in First Quarter 2026-27
OGDC reports earnings of Rs13.60 per share; declares Rs5 interim dividend
KARACHI: Oil and Gas Development Company Limited (OGDC) has reported a 53% year-on-year increase in profit to Rs58.5 billion for the first quarter of FY27, compared with the corresponding period last year.
According to a research report, the company’s earnings per share (EPS) reached Rs13.60 in 1QFY27. However, earnings declined 54% quarter-on-quarter, mainly reflecting the comparison with the previous quarter.
The financial results exceeded market expectations, primarily due to higher-than-anticipated finance income and lower administrative expenses.
OGDC’s net sales increased 38% year-on-year to Rs132.4 billion during the quarter, compared with the same period last year. The growth was mainly driven by higher oil and gas prices.
Finance income rose 13% year-on-year to Rs13.7 billion, although it declined 13% compared with the preceding quarter. The increase in finance income on an annual basis was primarily supported by higher interest income received during the quarter.
Administrative expenses increased 6% year-on-year to Rs2.2 billion but declined 42% quarter-on-quarter.
OGDC’s operating expenses and exploration costs
The company’s royalty expenses increased 47% year-on-year to Rs15.5 billion in 1QFY27, while declining 10% quarter-on-quarter. Royalty expenses accounted for 12% of net sales, remaining in line with the company’s historical average.
Exploration costs reached Rs4.7 billion, representing a 55% year-on-year increase. However, these costs declined 56% compared with the previous quarter.
The increase in exploration expenses primarily reflected higher prospecting costs. OGDC did not report any dry wells during the quarter.
Meanwhile, operating expenditures (OPEX) stood at Rs32.9 billion, up 14% year-on-year but down 35% quarter-on-quarter.
Tax expense and receivables recovery
OGDC recorded a tax expense of Rs29.4 billion during 1QFY27, compared with Rs23.6 billion in the corresponding quarter of the previous year.
The company’s effective tax rate (ETR) stood at 33.5%, compared with 38.2% in 1QFY26. In 4QFY26, the company had recorded a tax reversal of Rs43.7 billion following the Federal Constitutional Court’s (FCC) decision regarding the super tax.
The company’s receivables recovery ratio declined to 99% during the quarter, compared with 101% in 1QFY26 and 103% in 4QFY26.
OGDC announces Rs5 interim dividend
Alongside its financial results, OGDC announced an interim cash dividend of Rs5 per share for 1QFY27. The dividend payout ratio stood at 37%, compared with 39% in 1QFY26 and 20% in the preceding quarter.
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