Islamabad, Apr 30, 2025: Oil & Gas Development Company Limited (OGDCL) has reported a robust after-tax profit of Rs. 129.6 billion for the nine-month period ending March 2025, translating to earnings per share (EPS) of Rs. 30.13—a significant 24% increase compared to the same timeframe last year.
In the third quarter alone, the company earned Rs. 47.1 billion (EPS: Rs. 10.96), slightly declining by 1% year-on-year.
Along with its financial results, OGDCL announced a Rs. 3.00 per share interim cash dividend, taking the total payout for the nine months to Rs. 10.05 per share.
The company’s revenue dropped by 11% year-over-year to Rs. 310.9 billion in 9MFY25, down from Rs. 348.1 billion in the prior period.
Analysts at Arif Habib Limited attribute the dip to a global 10% decline in oil prices, a 10% appreciation in the Pakistani rupee, and an 8% drop in hydrocarbon production.
Read More: OGDCL Initiates Production from Offshore Block
In Q3 FY25, net sales decreased 7% year-over-year to Rs. 104.5 billion, as oil and gas output fell by 4% and 13%, respectively, accompanied by a 6% fall in oil rates.
OGDCL’s exploration spending surged by 73% to Rs. 17.4 billion, mainly driven by a 68% rise in dry wells, including Chak 202-2, and higher seismic operations.
Meanwhile, non-operating income jumped 45% to Rs. 84.7 billion in 9MFY25.
In the January–March 2025 quarter, other income stood at Rs. 18.1 billion, reflecting a 5% increase, supported by gains from cash reserves and investments.
The company’s liquid assets remained strong, with cash and short-term holdings standing at Rs. 203 billion in March, down slightly from Rs. 263 billion in December 2024.
Trade receivables edged up to Rs. 620 billion in March 2025 from Rs. 603 billion previously. OGDCL’s effective tax rate eased to 30% in the third quarter, down from 41% in the preceding quarter.
The payout ratio jumped to 33.4% in 9MFY25 versus 15.3% in the prior year.
Analysts have placed a “Buy” recommendation on OGDCL stock, projecting a target price of Rs. 286.6 by December 2025. The share currently trades at a forward P/E ratio of 5.1x for FY26, offering value to investors.
