Copyright brecorder
ISLAMABAD: The Board of Directors (BoD) of the Oil & Gas Development Company Limited (OGDCL) announced the financial results for the quarter ended September 30, 2025, and declared a first interim cash dividend of Rs 3.50 per share (35 percent) — the highest first-quarter dividend in the company’s history. In a meeting held on Wednesday, the OGDC’s BoD 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 USD 703 million as import substitution. Circular debt plan: OGDC receives Rs7.73bn third interest payment The quarter’s results reflected the combined impact of forced production curtailments by the SNGPL and the 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, the 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 MMcf 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 the 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 USD 57.61 per barrel (1Q 2024-25: USD 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 USD (1Q 2024-25: Rs 278.79 per USD). Collections improved considerably, with gas receivables collection at 129 percent and overall receivables collection at 109percent, 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, the OGDC continued to advance its business diversification agenda. The company’s USD 715 million pro-rata funding commitment for the Reko Diq copper-gold project has been approved by the Board and shareholders, with early-site works in progress and first production targeted for FY 2028-29. Appraisal and exploration activities in Abu Dhabi Offshore Block-5 are progressing, with first production anticipated in the second half of 2028. Meanwhile, the OGDC has also qualified to participate in Libya’s Bid Round 25 and is carrying out technical evaluations ahead of the February 2026 submission deadline. The company is further pursuing tight gas monetization, geothermal collaboration with Schlum-berger, and renewable energy projects through its subsidiary, OGDC Renewable Energy Limited (OREL). The OGDC remains committed to embedding Environmental, Social, and Governance (ESG) principles across its operations. The company’s ESG Framework 2025 is aligned with GRI and SASB standards and is progressing toward full alignment with IFRS S1 and S2 disclosure standards, ensuring a structured approach toward transparency, ethical conduct, climate resilience, and social responsibility. The Board ESG Committee continues to oversee sustainability-related risks and monitor performance against emerging global benchmarks. OGDC has signed the Oil and Gas Decarbonization Charter at COP-28 and is actively implementing its decarbonization roadmap aimed at emission reduction, operational efficiency, and community impact. Copyright Business Recorder, 2025
