ISLAMABAD: Oil & Gas Development Company Limited (OGDC) announced a record half-year dividend of Rs 7.75 per share for the period ended December 31, 2025, including its highest-ever second quarterly payout of Rs 4.25 per share, even as production curtailments and lower oil prices weighed on earnings.
The Board of Directors, in its meeting held on February 23, 2026, approved a second interim cash dividend of Rs 4.25 per share (42.50%), taking the cumulative interim payout for the half year to Rs 7.75 per share — the highest half-year distribution in the company’s history.
For the six months ended December 31, 2025, OGDC posted net sales revenue of Rs 192.830 billion and profit after tax of Rs 73.019 billion, translating into earnings per share (EPS) of Rs 16.98.
The company stated that its financial performance reflected the impact of forced production curtailments by SNGPL and UPL due to system load constraints, along with a lower average crude oil basket price. These pressures were partly offset by higher realized gas prices and favorable exchange rate movement.
During the reporting period, OGDC contributed Rs 120 billion to the national exchequer in the form of corporate taxes, dividends, royalty and other government levies. Its oil and gas output also generated estimated foreign exchange savings of US$ 1.4 billion through import substitution.
Average daily net saleable production stood at 31,848 barrels of crude oil, 626 million cubic feet (MMcf) of natural gas, and 636 tons of LPG, compared to 31,477 barrels of oil, 672 MMcf of gas and 629 tons of LPG in the corresponding period last year. Production curtailments during the half year adversely affected output by 3,384 barrels of oil per day, 152 MMcf of gas and 51 tons of LPG.
Operationally, OGDC spud five wells during the period and made four oil and gas discoveries, strengthening its hydrocarbon resource base. The company also secured petroleum exploration rights for eight offshore blocks in the October 2025 bidding round, expanding its footprint in offshore exploration.
On the development side, the Jhal Magsi Project was successfully commissioned and is currently producing approximately 14 MMcfd of gas along with condensate. The Dakhni Compression Project was completed ahead of schedule, while other key compression initiatives are progressing as planned.
The impact on sales revenue — amounting to Rs 36.468 billion primarily due to lower production volumes and reduced realized crude oil and LPG prices — was partially offset by higher realized gas prices and exchange rate gains.
Financial discipline showed improvement in collections, with gas receivables collection reaching 156% and overall receivables collection standing at 125%, reversing the earlier build-up trend in outstanding dues.
OGDC also continued advancing its Environmental, Social and Governance (ESG) strategy, strengthening climate-related disclosures and integrating sustainability considerations across its operations and value chain.
The Board appreciated the management’s focus on operational efficiency, financial prudence and shareholder returns, noting that the company was able to declare its highest-ever second quarterly and half-year dividend while sustaining its leadership position in Pakistan’s exploration and production sector.
