Karachi, February 28, 2025 – Oil and Gas Development Company Limited (OGDCL) has reported a significant 33% decline in its half-year profit after tax, primarily due to increased taxation.
According to the half-year financial statement for the period ending December 31, 2025, submitted to the Pakistan Stock Exchange (PSX), OGDCL announced a profit after tax of Rs 82.46 billion, compared to Rs 123.3 billion in the same period of the previous fiscal year.
The decline in net profit is largely attributed to higher income tax payments. OGDCL paid Rs 73.36 billion in income tax during the six-month period ending December 31, 2024, compared to Rs 35.02 billion in the corresponding months of the prior fiscal year.
This brings OGDCL’s earnings per share down to Rs 19.17 for the half-year ending December 31, 2024, compared to Rs 28.67 in the same period of the previous fiscal year.
The board of directors of OGDCL convened on February 28, 2025, approving an interim cash dividend for the quarter ending December 31, 2025, at Rs 4.05 per share, equivalent to 40.5%. This comes in addition to the previously paid interim dividend of Rs 3 per share, equating to 30%.
The company’s total sales revenue fell to Rs 206.42 billion during the half-year of fiscal year 2024-25, compared to Rs 235.75 billion in the corresponding period of the previous fiscal year.
OGDCL’s gross profit stood at Rs 127.41 billion during the first half of the fiscal year 2024-25, compared to Rs 146.2 billion in the same period last year.
Despite the decline in profits, OGDCL remains a key player in Pakistan’s energy sector, focusing on oil and gas exploration and production. The company continues to navigate challenges in the industry, including fluctuating oil prices and evolving regulatory frameworks. OGDCL’s management is actively strategizing to optimize production and manage costs to sustain long-term growth and profitability.
Industry analysts expect OGDCL to leverage its strong market position to maintain stability in Pakistan’s energy sector while adapting to taxation policies and market dynamics. The company’s resilience and strategic planning will play a crucial role in its financial performance for the upcoming quarters.
