OGDCL Posts Rs. 169.9 Billion Profit, Announces Highest-Ever Dividend

Oil and Gas Development Company Limited (OGDCL), Pakistan’s largest exploration and production firm, reported a consolidated net profit of Rs. 169.9 billion for the fiscal year ended June 30, 2025, down nearly 19% from Rs. 208.9 billion a year earlier. The Board of Directors announced a final cash dividend of Rs. 5 per share, or 50%, for FY25. This comes on top of interim dividends of Rs. 10.05 per share, or 100.5%, marking the highest payout in the company’s history, according to Arif Habib Ltd. Earnings per share stood at Rs. 39.50 compared with Rs. 48.59 in FY24, according to results shared with the Pakistan Stock Exchange on Tuesday. The decline was mainly attributed to a 13% fall in net sales, which slipped to Rs. 401.1 billion from Rs. 463.7 billion in the prior year. Gross profit fell 18% to Rs. 231.6 billion, reducing the company’s profit margin to 58% from 61% a year earlier. Exploration and prospecting costs rose sharply by 49% to Rs. 18.7 billion, while operating costs eased slightly to Rs. 120.2 billion from Rs. 123.5 billion. Finance costs dropped to Rs. 5.8 billion from Rs. 7.1 billion. Finance and other income nearly doubled, rising 98% to Rs. 81.8 billion from Rs. 41.3 billion, providing some cushion to the bottom line. OGDCL’s share of profit in associates was Rs. 12.6 billion, compared with Rs. 13.2 billion last year. Before taxation, profit came to Rs. 279.3 billion, down from Rs. 293.8 billion in FY24. After accounting for taxes of Rs. 109.4 billion, net profit settled at Rs. 169.9 billion. Brokerage Topline Securities noted that earnings were stronger than expected due to lower exploration costs and an effective tax rate.