ISLAMABAD: Oil and Gas Development Company Ltd (OGDC) has reported a 16% year-over-year decline in earnings for the second quarter of fiscal year 2026, with net profits reaching PkR34.7 billion, equivalent to an earnings per share of PkR8.1. The dip in earnings was attributed to reduced gas production, lower oil prices, and a decrease in other income sources. Despite the drop in earnings, OGDC declared its highest-ever cash dividend for the second quarter at PkR4.25 per share, bringing the cumulative half-year payout to PkR7.75 per share, with a payout ratio of 46%.
According to AKD Securities Limited, OGDC's net sales for the period were PkR96.6 billion, reflecting a 4% decline from the previous year, primarily due to reduced hydrocarbon production and lower average oil prices, with Arab light crude averaging US$65 per barrel, a 13% decrease year-over-year. The company's gas production was estimated to have fallen by 14% year-over-year, while oil production saw a marginal increase of 1%, reaching 738 million cubic feet per day for gas and 32,600 barrels per day for oil. The decline in gas output was mainly attributed to decreased production from the Qadirpur and Uch gas fields.
OGDC's operating expenses for the quarter rose significantly, amounting to PkR37.5 billion, up 38% compared to the same period last year. Exploration expenses also surged to PkR8.8 billion, more than doubling year-over-year, as the company encountered two dry wells, Khatian-1 and Jakhro North-1, in which it holds a 77.5% working interest. Additionally, OGDC continued its efforts in conducting 2D and 3D seismic surveys during the quarter.
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