Oil and Gas Development Company Limited (OGDCL), the country’s largest exploration and production (E&P) company, reported a profit-after-tax (PAT) of Rs41.44 billion for the three months ended December 31, 2024.
Earnings registered a decline of over 44% as compared to Rs74.26 billion in the same period of the previous year (SPLY), showed the E&P’s latest financial results provided to the Pakistan Stock Exchange (PSX) on Friday.
The board of directors met on February 28 to review the company’s financial and operational performance and also approved an interim cash dividend of Rs4.05 per share i.e. 40.5%. This was in addition to an interim dividend of Rs3 per share i.e. 30%.
Earnings per share (EPS) were recorded at Rs9.63 in 2QFY25 as compared to EPS of Rs17.27 in SPLY.
The decline in profit comes amid decreased sales and higher taxation paid during the period.
ODGCL’s net sales lowered to Rs100.4 billion compared to Rs115.2 billion in SPLY, which is down by nearly 13%.
OGDC’s profit down 7% in FY24 despite higher sales
Consequently, the E&P’s gross profit registered a decline of 10%, clocking in at Rs61.6 billion in 2QFY25, compared to Rs68.2 billion in 2QFY24.
However, despite lower earnings, the company’s profit margin improved to 61.3% in 2QFY25, as compared to 59.2% in the same period previous year.
During the period, the E&P saw a massive increase of over 89% in its other income, which stood at Rs20.86 billion in 2QFY25, as compared to Rs11.02 billion in 2QFY24.
Meanwhile, the company’s exploration and prospecting expenses increased by over 68%.
OGDCL’s share of profit in associates lowered to Rs1.4 billion in 2QFY25, compared to Rs3.3 billion in SPLY, a decrease of over 57%.
Consequently, the E&P profit before tax stood at Rs72.7 billion in 2QFY25, as compared to Rs72.1 billion in SPLY, reflecting a marginal increase of 1%.
During the three-month period, the company paid Rs31.3 billion in taxes.
OGDCL was incorporated on October 23 1997 under the Companies Ordinance, 1984. The company was established to undertake the exploration and development of oil and gas resources, including the production and sale of oil and gas and related activities formerly carried on by Oil and Gas Development Corporation, which was established in 1961.
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