OGDC declares highest-ever first quarter dividend of Rs 3.50 per share
ISLAMABAD: The Board of Directors of Oil & Gas Development Company Limited (OGDCL) on Wednesday declared a first interim cash dividend of Rs 3.50 per share (35%) — the highest first-quarter dividend in the company’s history.
The announcement was made during a board meeting held here, which also approved the financial results for the quarter ended September 30, 2025. OGDC posted net sales revenue of Rs 96.192 billion and profit after tax of Rs 38.305 billion, translating into earnings per share (EPS) of Rs 8.91.
During the period, the Company contributed Rs 64 billion to the national exchequer through corporate tax, dividends, royalty, and government levies, while its oil and gas production contributed foreign exchange savings of US$703 million as import substitution. The quarter’s results reflected the combined impact of forced production curtailments by SNGPL and UPL and a lower average crude oil basket price, partly offset by a higher realized gas price and appreciation of the US dollar against the rupee.
Average daily net saleable production during the quarter stood at 31,315 barrels of crude oil, 641 MMcf of natural gas, and 630 tons of LPG compared with 31,768 barrels, 699 MMcf, and 618 tons, respectively, in the corresponding period last year. In the absence of forced curtailments, average daily saleable production would have been 34,038 barrels of oil, 783 MMcf of gas, and 698 tons of LPG. Production was supported by the injection of four new wells — Aradin-1, Soghri North-1, Jhal Magsi South-1 and South-2 — along with the installation of Electrical Submersible Pumps (ESPs) at Rajian-5 and Pasakhi-11, resulting in an incremental crude oil increase of over 3,100 barrels per day. In total, 24 workover jobs were executed to optimize field performance and arrest natural decline.
During the quarter, OGDC continued to demonstrate exploration strength, acquiring 233 line-km of 2D and 110 sq. km of 3D seismic data. Using in-house resources, the Company processed and reprocessed an additional 236 line-km of 2D and 1,590 sq. km of 3D seismic data. Sustained exploration efforts resulted in two gas-condensate discoveries — Chakar-1 in District Tando Allah Yar and Bitrism East-1 in District Khairpur, Sindh — with a combined expected potential of 965 barrels per day of oil and 23 Million Cubic Feet per day of gas.
The 2P reserves of these discoveries are estimated at 1.65 million stock tank barrels (MMSTB) of oil and 39.34 billion cubic feet (bcf) of gas, equivalent to approximately 9.24 million barrels of oil equivalent (MMBOE). The Company maintained momentum on key development projects. Jhal Magsi Project in Balochistan has been successfully commissioned and is currently producing around 14 MMcfd of gas and 45 barrels per day of condensate. Construction and installation activities for the Dakhni Compression Project in Punjab and the KPD-TAY Compression Project in Sindh are on schedule, with completion expected in January 2026 and April 2026, respectively. The Uch Compression project in Balochistan, targeted for completion by June 2026, is advancing as per plan to sustain gas supply under the Gas Sales Agreement with UPL.
The impact on sales revenue, primarily due to forced production curtailment amounting to Rs 16.7 billion and a lower average realized crude oil price of US$ 57.61 per barrel (1Q 2024-25: US$ 64.31 per barrel), was partially offset by an increase in the average realized gas price to Rs 718.38 per Mcf (1Q 2024-25: Rs 706.30 per Mcf) and a higher rupee-dollar parity rate of Rs 282.96 per US$ (1Q 2024-25: Rs 278.79 per US$). Collections improved considerably, with gas receivables collection at 129% and overall receivables collection at 109%, reversing the previous trend of build-up. The Company maintained a strong current ratio of 10.44 times compared with 8.16 times in the same period last year, reflecting improved liquidity and balance sheet strength. During the quarter, OGDC continued to advance its business diversification agenda. APP
