OGDC FY26 profit surges 43%

September 04, 2026 (MLN): Oil & Gas Development Company Limited (PSX: OGDC) reported a 43% surge in its consolidated net profit for the fiscal year ended June 30, 2026, reaching Rs242.37bn compared to Rs169.90bn in the preceding year.

Alongside the financial results, the board recommended a final cash dividend of Rs6 per share.

Reflecting this solid bottom-line growth, basic and diluted earnings per share (EPS) for the year improved to Rs56.35, up from Rs39.50 in FY25.

The primary catalyst behind the performance was top-line revenue expansion coupled with a substantial 85% reduction in corporate taxation charges.

Net revenue from contracts with customers grew by 12% year-on-year to Rs449.19bn, up from Rs401.18bn in FY25.

Although royalty payments increased by 12% to Rs52.62bn and operating expenses expanded 23% to Rs147.69bn, gross profit rose 7% to Rs246.76bn compared to Rs231.61bn in the prior year.

On the operational front, overheads expanded to support exploration and administrative scale-up.

Exploration and prospecting expenditure increased 54% to Rs28.78bn, general and administration expenses rose 47% to Rs11.07bn, and "finance and other income" declined 34% to Rs54.39bn.

Despite these operational cost pressures, pre-tax performance was supported by a 31% increase in the share of profit from associates (Rs16.59bn) and a 7% reduction in Workers' profit participation fund charges (Rs13.64bn), leaving profit before income tax at Rs259.13bn (down 7% from Rs279.31bn in FY25).

Below the pre-tax line, OGDC received a massive boost from reduced tax outlays.

The company absorbed a tax charge of Rs16.76bn for the year, representing an 85% drop from the Rs109.41bn tax charge recorded in FY25.

Supported by top-line growth, associate income strength, and substantial tax relief, Oil & Gas Development Company Limited securely closed the fiscal year with its net profit reaching Rs242.37bn.

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