OGDC profit shrinks 11% in 9MFY26, dividend at Rs3.25

April 29, 2026 (MLN): Oil & Gas Development Company Limited (PSX: OGDC) reported an 11% decline in its consolidated net profit for the nine months ended March 31, 2026, recording Rs115.26bn compared to Rs129.61bn in the corresponding period last year.

Reflecting this bottom-line contraction, the company's basic and diluted earnings per share (EPS) dropped to Rs26.80 from Rs30.13 in 9MFY25.

The company also declared dividend at Rs3.25 per share.

The profit decline was primarily driven by a slight dip in top-line sales, coupled with escalating operating and exploration costs, alongside a sharp drop in secondary income.

OGDC’s net sales posted a 3% year-on-year decrease, falling to Rs300.13bn from Rs310.91bn.

While royalty expenses declined by 4%, core operating expenses climbed by 14% to Rs96.74bn. This unfavorable cost dynamic caused the gross profit to contract by 11%, settling at Rs166.33bn compared to Rs187.33bn in the prior year.

On the operational front, the company faced mounting pressures. Exploration and prospecting expenditure surged by 22% to a heavy Rs17.90bn, and general and administration expenses increased by 28% to Rs7.19bn.

The most significant blow to the bottom line, however, came from a massive 40% plunge in finance and other income, which tumbled to Rs38.50bn from Rs64.69bn last year.

Below the operating line, OGDC did find some relief. Finance costs dropped by 15% to Rs3.81bn, and the share of profit from associates grew by a healthy 21% to Rs9.14bn.

The Workers' profit participation fund also decreased by 21% in line with lower pre-tax earnings.

Despite these positive adjustments, the shrinking gross margins and plunging secondary income pushed the profit before income tax down by 21% to Rs175.80bn.

The company's final saving grace was a massive 35% reduction in its income tax expense, which dropped to Rs60.54bn from a staggering Rs93.49bn in 9MFY25. This significant tax relief cushioned the overall impact, allowing the company to contain its net profit decline to 11%, closing the nine-month period at Rs115.26bn.

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