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OGDCL quarterly profit slumps to Rs35bn

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ISLAMABAD: Mainly due to the forced closure of gas fields under government decisions and the impact of lower global prices, Pakistan’s largest oil and gas producer has been witnessing a continuous decline in profitability over the past three quarters.

One of the country’s top profit-earning entities, Oil and Gas Development Company Ltd (OGDCL), on Monday reported a 17 per cent decline in its profit-after-tax (PAT) at Rs34.7 billion for the second quarter (October-December) of FY26 against Rs41.44bn in the same period of last year.

The profit was also down by about 9pc when compared to Rs38.3bn of the preceding quarter ending Sept 30, 2025. As such, the company’s cumulative PAT for 1HFY26 dropped by 11pc to Rs73bn, compared with Rs82.5bn in the first half of FY25.

The company’s financial data showed its profit has been on a sliding scale from Rs47.2bn PAT for the quarter ending March 2025, followed by Rs40.3bn in the last quarter of the last fiscal ending June 2025, further down to Rs38.3bn for the quarter ending September 2025, and finally Rs34.7bn for the quarter ending December 2025.

Forced gas field closures, lower global prices hit Pakistan’s top oil and gas producer

All this was mainly due to the closure of the domestic gas field, as the power sector declined to lift imported LNG as originally committed, forcing gas utilities, particularly SNGPL, to order OGDCL to close its gas fields to overcome a supply glut in the pipeline network. The company’s production losses from these curtailments exceeded Rs36bn.

The state-run firm politely put on record before its board of directors that “the production curtailments during the period adversely impacted daily net production by 3,384 barrels of oil, 152 million cubic feet (mmcf) of gas, and 51 tonnes of LPG”.

Based on these outcomes, the OGDCL’s board of directors on Monday declared a second interim cash dividend of Rs4.25 per share (42.50pc), the company said in a statement. It said the board announced the financial results for the half year ended Dec 31, 2025, and declared “the highest-ever second quarterly dividend in the company’s history”.

This brings the cumulative interim dividend for the half year to Rs7.75 per share, representing the highest-ever half-year payout by the company, it added. OGDC posted net sales revenue of Rs192.83bn and profit after tax of Rs73.019bn, translating into earnings per share (EPS) of Rs16.98.

“The half-year results reflected the impact of forced production curtailments by SNGPL and UPL (Uch Power Ltd) due to system load constraints, along with a lower average crude oil basket price, partly offset by higher realised gas prices and exchange rate movement.

During the period, the company contributed Rs120bn to the national exchequer through corporate tax, dividends, royalties, and other government levies, while its oil and gas production generated estimated foreign-exchange savings of $1.4bn through import substitution.

Average daily net saleable production during the half year stood at 31,848 barrels of crude oil, 626 mmcf of natural gas, and 636 tonnes of LPG, compared with 31,477 barrels, 672 mmcf and 629 tonnes, respectively, in the corresponding period last year.

The production curtailments during the period adversely impacted daily net production by 3,384 barrels of oil, 152 mmcf of gas, and 51 tonnes of LPG. Operationally, OGDC spud five wells during the period, and sustained exploration efforts led to four oil and gas discoveries, further strengthening the company’s resource base.

The company also secured petroleum exploration rights over eight offshore blocks in the October 2025 bidding round. On the development front, Jhal Magsi Project was successfully commissioned and is currently producing around 14 mmcfd of gas along with condensate, while Dakhni Compression Project has been completed ahead of schedule.

Other key compression projects are progressing as planned. The impact on sales revenue, amounting to Rs36.468 billion primarily due to lower production volumes and reduced realized crude oil and LPG prices, was partially offset by higher realised gas prices and exchange rate movement.

Collections improved considerably, with gas receivables collection reaching 156pc and overall receivables collection standing at 125pc, reversing the previous build-up trend. Building on its sustainability journey, OGDC is reinforcing its Environmental, Social and Governance (ESG) strategy, advancing climate-related disclosures and integrating ESG considerations across its operations and value chain.

The board appreciated the management’s continued focus on operational performance, financial discipline and shareholder returns, which enabled the declaration of the highest-ever second-quarter and half-year dividend while maintaining OGDCL’s leadership position in Pakistan’s exploration and production sector.

Published in Dawn, February 24th, 2026



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KSE-100 gains over 800 points in early trading

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February 25, 2026

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Pakistan’s benchmark index, KSE-100, gained 838.67 points from its previous close of 166,258.54 by 10:40am on Wednesday.

This 0.5 per cent rise during early trading comes as the market began to pick up after losing 400 points by 10am.

Volatility persisted in the market on Wednesday, following Tuesday’s particularly turbulent session that saw the index swing from an intraday gain of 1,546 points to a steep decline of 3,783 points as selling pressure intensified.

So far today, the index has touched a high of 168,191.64 and a low of 165,819.42, underscoring continued instability in trading activity.

The top active stocks so far were led by Cnergyico PK Ltd., which rose 12.69pc to Rs7.46 at a volume of 48,242,450, followed by First National Equities Ltd., which rose 3.40pc to Rs1.52 at a volume of 23,490,831, and National Bank of Pakistan, which rose 5.96pc to Rs266.25 at a volume of 16,963,676.

The top advancers so far were led by Media Times Ltd., which rose 15.25pc to Rs5.44, followed by Cnergyico PK Ltd. and Telecard Ltd., which rose 10.87pc to Rs9.28.

The top decliners so far were by textile composite Azgard Nine Non-Voting Ordinary Shares, which fell 11.38pc to Rs6.85, followed by Security Investment Bank Ltd., which declined 10.30pc to Rs7.40, and LOADS Ltd. (R), which declined 6.67pc to Rs0.98.

As analysts debate whether the recent market downturn reflects a natural correction or is the result of rising geopolitical uncertainty, an equally important factor to watch may be the impact corporate earnings reports could have on investor sentiment.



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Power minister hopeful of deal under new competitive market regime by June

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4 hours ago

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February 25, 2026

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https://www.dawn.com/news/1975610



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Leghari hopeful of CMOD deal by June

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5 hours ago

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February 25, 2026

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ISLAMABAD: The first 200 megawatts (MW) electricity transaction under the newly launched Competitive Market Operations Date (CMOD) regime is expected to be completed by June this year, said Power Minister Sardar Awais Ahmed Khan Leghari on Tuesday.

Speaking at the declaring ceremony of the CMOD, the minister said the transaction will mark a significant milestone in Pakistan’s transition towards a competitive power market. The minister said the reform journey, originally envisioned decades ago and initiated in 2016-17 in its practical form, had finally entered the implementation phase after years of deliberations and institutional groundwork.

The symbolic activation of CMOD was jointly performed by Mr Leghari and Secretary Power Division Dr Muhammad Fakhre Alam Irfan.

Reflecting on the delay in implementation despite conceptual approval of competitive market reforms in the early 1990s, the minister termed it a governance lag that cost the country valuable time.

Power minister sees milestone in Pakistan’s transition to competitive market

“When you conceptualise something and approve it in 1992 but only begin serious implementation nearly two decades later, it reflects the challenges in our governance framework,” he observed.

The minister emphasised that reform was a collaborative institutional effort and appreciated the role of senior officials and other stakeholders for their intellectual input and implementation support.

“I think entire team has done an amazing amount of work in the past few years,” he said, acknowledging the contributions of the Power Division, regulators, and market institutions.

“This is not just a formality. It shows that not only political leadership but officers at the helm of affairs truly matter.

The intellectual input we receive as policymakers and the way we jointly work toward implementation is critical for the betterment of the people,” Mr Leghari said, expressing gratitude to the prime minister for his ownership and trust, stating that without his continued support, the reform process could not have reached the implementation stage.

Highlighting ongoing challenges, the minister noted that certain procedural and regulatory matters, including determination of wheeling charges, were still under process. He said a summary had been moved for the premier’s consideration and expressed optimism that following April, auction-related transactions would proceed smoothly.

“We are expecting that by June this year, the first 200MW transaction will be completed. It has taken 20-25 years of discussions and efforts. Achieving this will be a major step forward,” the minister remarked.

He expressed hope that the transition from wholesale to retail electricity market would proceed at a much faster pace than past reforms.

He stressed the need to adopt global best practices rat­her than relying on trial-and-error learning. The min­ister distributed certificates among senior officials in recognition of their contributions to the reform process.

Published in Dawn, February 25th, 2026



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