OGDC appoints Ahmed Hayat Lak as new CEO

January 09, 2025 (MLN): Oil and Gas Development Company Limited (PSX: OGDC) has appointed Ahmed Hayat Lak as the Managing Director/Chief Executive Officer (CEO) of the company. 

The term of Ahmed Hayat will be for three years, effective from January 9, 2025, the company's filing on PSX revealed today.

Earlier he was appointed as Managing Director /CEO of OGDC on February 22, 2023.

Previously he served as company Secretary and head of Legal Services.

Ahmed Hayat possesses extensive experience in strategic leadership, corporate governance, public sector management, and the Exploration and Production (E&P) industry.

Ahmed Hayat is a director on the Boards of Mari Petroleum Company Limited (MPCL), Reko Dik Mining Company Limited (RDMC), Pakistan Minerals Private Limited (PMPL), and Pakistan International Oil Limited (PIOL).

Before joining OGDC, He served in Pakistan Oil Fields Limited (POL) as head of Corporate and Legal Services.

He also worked in the National Accountability Bureau as an Advisor to the Chairman and as a Consultant in the office of the Prosecutor General.

He holds a post-graduate degree in law from the University of Wolverhampton UK and a Bachelor of Law (Hons.) degree from the University of London, United Kingdom.

He is a certified director, production optimization, business sustainability, and the company’s transformation into an energy company are his primary focus areas.

OGDC was established to undertake the exploration and development of oil and gas resources, including the production and sale of oil and gas and related activities.

Currently, the OGDC stock trades at a discounted Price-to-Book (P/B) ratio of 0.7x and a FY26 Price-to-Earnings (P/E) ratio of 5.0x, significantly below its 10-year averages of 1.5x and 5.9x.

The gas system went from an OGRA-estimated shortfall of Rs171.2 billion in FY24 to a projected surplus of Rs78.9bn in FY25.

Reko Diq's vast copper and gold reserves could boost OGDC and Pakistan's prospects.

The 15% stake sell-off to Manara Minerals (Saudia Arabia), may force OGDC to give up a sizeable portion of the lucrative asset due to the government’s foreign exchange needs.

OGDC’s cash calls for this campaign are expected to total $ 304.7 million over the next 5 years.

Any developments in the commercial operations of this block will act as a further positive trigger to the company’s earnings and valuation.

OGDC is poised to reach a price target of Rs335 per share by December 2025, offering a projected 53% capital gain and a 6.4% dividend yield.

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