Karachi, February 23, 2026 – Oil and Gas Development Company Limited (OGDCL) on Monday reported a 16% year-on-year decline in net profit for the second quarter of fiscal year 2026, primarily due to lower gas production, rising operating costs, and higher exploration expenses.
According to financial results submitted to the Pakistan Stock Exchange (PSX), OGDCL posted a profit after tax of Rs34.71 billion for the quarter ended December 31, 2025, compared to Rs41.44 billion in the corresponding period of last year. Earnings per share (EPS) stood at Rs8.07, taking cumulative 1HFY26 earnings to Rs16.98 per share, down 11% YoY.
In a commentary, Topline Securities Limited noted that the results were largely in line with industry expectations. Net sales during the quarter declined 4% YoY to Rs96.6 billion, mainly due to reduced gas output caused by annual turnaround activity (ATA) at the Uch gas field.
Royalty expenses increased 3% YoY to Rs11.9 billion, while exploration costs surged 2.2 times YoY to Rs8.8 billion, driven by two dry wells — Khatian and Jakhro North. Operating expenditures (OPEX) also rose sharply by 38% YoY to Rs36.9 billion, with OPEX per barrel of oil equivalent reaching $10.3/boe.
Finance and other income declined 29% YoY to Rs14.7 billion, mainly due to lower interest income. Meanwhile, the effective tax rate dropped to 29%, offering some relief to earnings.
OGDCL also announced a cash dividend of Rs4.25 per share, taking the half-year payout to Rs7.75 per share, reflecting a 46% payout ratio, signaling management’s confidence in the company’s financial stability despite current challenges.