Production curbs drag OGDCL profit down 11pc in 9MFY26

ISLAMABAD: Oil and Gas Development Company Limited (OGDCL), the country’s largest oil and gas producer, reported an 11 per cent decline in profit after tax for the first nine months of the current fiscal year, with the company saying the results were affected by forced production curtailments and weaker realised prices for crude oil and LPG.

According to a company statement issued after its board of directors approved the financial results for the nine months ended March 31, profit after tax stood at Rs115.263 billion in July-March FY26, compared with Rs129 billion in the same period of FY25 and Rs171 billion in FY24. The company said the nine-month profit translated into earnings per share of Rs26.80.

OGDCL also announced a quarterly dividend of Rs3.25 per share. The company said this was its highest third-quarter payout, taking the total dividend for the first nine months to Rs11 per share.

Net sales for the period were recorded at Rs300.127 billion, down about 3.5 per cent from Rs311 billion in the corresponding period last year.

The company stated, ‘The results were impacted by production curtailments, lower realised crude oil and LPG prices, and other market dynamics, partially offset by higher realised gas prices and exchange rate movement’.

The production losses stemmed from the forced shutdown or curtailment of oil and gas wells because of surplus imported liquefied natural gas in the system. OGDCL added that curtailments reduced daily net output by around 3,482 barrels of crude oil, 141 mmcfd of gas and 48 tonnes of LPG during the period.

Average daily net saleable production in 9MFY26 was 32,022 barrels of crude oil, 648 mmcfd of natural gas and 653 tonnes of LPG. In the same period last year, the corresponding figures were 31,710 barrels of crude oil, 676 mmcfd of gas and 654 tonnes of LPG.

The company said the extent of curtailment eased later in the period as the US-Iran war disrupted LNG imports. It also said that despite these constraints, its gross crude oil production crossed the 40,000 barrels per day mark after a long interval, which it attributed to targeted production optimisation measures.

Exploration and development activity

During the nine-month period, OGDCL said it contributed Rs160 billion to the national exchequer through corporate tax, dividends, royalties and other government levies. Its oil and gas production generated estimated foreign exchange savings of $2.3 billion through import substitution.

The company said it spudded 10 wells during the period and made eight oil and gas discoveries as part of its exploration campaign.

OGDCL also announced that the Baragzai X-1 well in the Nashpa Exploration License had been successfully injected into the production gathering system. According to the company, the well is currently producing about 6,100 barrels of oil per day, 18 mmcfd of gas and 50 tonnes of LPG.

On the development side, the company said the Jhal Magsi Project continues to produce around 14 mmcfd of gas along with condensate. It further stated that the Dakhni Compression Project has been completed successfully and is helping enhance production.

Other major development schemes, including the Uch and KPD-TAY compression projects, are progressing according to plan, the company said.