OGDC profit drops to Rs38.3bn, yet declares Rs3.5 dividend

October 29, 2025 (MLN): Oil and Gas Development Company Limited (PSX: OGDC) reported a profit after tax (PAT) of Rs38.3 billion for the quarter ended September 30, 2025, showing a 5.5% YoY decline compared to Rs41bn earned in the same period last year.

Despite the earnings slowdown, the company surprised investors by announcing an interim cash dividend of Rs3.50 per share (35%) for the quarter.

The decline in profitability was primarily driven by a 9.3% drop in sales revenue and a significant 52.6% decrease in finance and other income, despite a marginal fall in exploration and prospecting expenditures.

According to the company’s unaudited financial statements, net sales stood at Rs96.19bn in 1QFY26, down from Rs106.01bn in 1QFY25, reflecting lower production volumes and realized prices.

Gross profit also dropped by 14.5% to Rs56.28bn from Rs65.82bn a year earlier, dragging the gross profit margin down to 58.5% from 62.1% a year earlier.

Interestingly, the net profit margin edged higher to 39.8% from 38.7%, reflecting cost discipline and lower exploration expenses.

However, finance income tumbled 52.6%, further weighing on the bottom line.

Meanwhile, earnings per share (EPS) came in at Rs8.91, compared to Rs9.54 in the corresponding period last year.

Key Financial Highlights (Rs billion)

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