OGDC Posts Rs. 129.6 Billion Profit for 9MFY25

Oil & Gas Development Company Limited (OGDCL) announced a profit after tax of Rs. 129.6 billion for the nine-month period ending March 2025 (9MFY25), translating into earnings per share (EPS) of Rs. 30.13, up 24 percent year-on-year. On a quarterly basis, profit stood at Rs. 47.1 billion (EPS: Rs. 10.96), down 1 percent compared to the same period last year. Alongside the result, the company also announced a cash dividend of Rs. 3.00 per share (totaling Rs. 10.05 per share for the nine months). The company’s topline contracted by 11 percent year-on-year, reaching Rs. 310.9 billion during 9MFY25, compared to Rs. 348.1 billion in the same period last year. According to Airf Habib Limited (AHL), the decline was attributed to a 10 percent reduction in international oil prices, a 10 percent appreciation of the Pakistani rupee against the US dollar, and an 8 percent drop in oil and gas production. During the third quarter alone, net sales fell by 7 percent year-on-year to Rs. 104.5 billion, amid a 4 percent and 13 percent reduction in oil and gas production, respectively, and a 6 percent year-on-year fall in oil prices. Exploration costs rose sharply by 73 percent year-on-year to Rs. 17.4 billion in 9MFY25, mainly due to a 68 percent increase in dry wells, with four wells (Chak 202-2 and others) failing to yield hydrocarbons and heightened seismic activity. Other income surged by 45 percent to Rs. 84.7 billion in 9MFY25. For the January–March 2025 quarter, other income was Rs. 18.1 billion, marking a 5 percent jump year-on-year on the back of increased income from cash and cash equivalents. The company’s cash balance also grew, with cash and short-term investments rising from Rs. 263 billion in December 2024 to Rs. 203 billion in March 2025. Trade debts amounted to Rs. 620 billion in March 2025, slightly up from Rs. 603 billion in December 2024. The company booked effective taxation at 30 percent in January–March 2025 versus 41 percent in October–December 2024. The payout ratio increased to 33.4 percent in 9MFY25 compared to 15.3 percent in the same period last year. OGDCL has been rated a “Buy” with a target price of Rs. 286.6 per share by December 2025. The stock is currently trading at a forward price-to-earnings ratio of 5.1x for FY26.