Karachi: Oil and Gas Development Company Limited (OGDC) held a corporate briefing to address its current business dynamics and future outlook. The company disclosed a profit after tax (PAT) of Rs73 billion for the recent quarter, marking an 11% year-over-year decline. Despite the downturn, OGDC declared a cash dividend of Rs4.25 per share, bringing the cumulative payout for the first half of the fiscal year 2026 to Rs7.75 per share.
According to JS Global, OGDC's topline revenue for the first half of fiscal year 2026 was reported at Rs193 billion, a 7% decrease from the previous year. This decline is attributed primarily to lower oil prices and forced curtailments by Sui Northern Gas Pipelines Limited (SNGPL) and Uch Power Limited, which resulted in a loss of 3.4 thousand barrels per day (kbpd) of oil, 152 million cubic feet per day (mmcfd) of gas, and 51 tonnes per day (tpd) of liquefied petroleum gas (LPG).
The company experienced increased operating costs, driven largely by salary increments and additional joint venture expenses related to operations in the Waziristan block. Despite these challenges, OGDC outlined several ongoing development projects with specified timelines aimed at boosting production capacity. These include the Uch Compression Project, KPD-TAY Compression Project, Bettani Project, and Sinjhoro Phase-2, with expected completion dates ranging from April 2026 to December 2027.
Regarding the Reko Diq project, management revealed that Pakistan Minerals Private Limited (PMPL) invested US$75 million during the ongoing year, with OGDC's share amounting to US$24.5 million. While security concerns persist, the project timelines remain on track.
Additionally, OGDC addressed the issue of super tax, noting that while a detailed judgment is pending, a short order indicates the continuation of the levy. Consequently, the company has not reversed any provisions related to the super tax.
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