Oil and Gas Development Company Limited (OGDCL), the country’s largest exploration and production (E&P) company, reported a profit-after-tax (PAT) of Rs41.02 billion for the quarter ended September 30, 2024.

Earnings registered a decline of over 16% as compared to Rs49.03 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 October 25 to review the company’s financial and operational performance and also approved an interim cash dividend of Rs3 per share i.e. 30%.

Earnings per share (EPS) were recorded at Rs9.54 in 1QFY25 as compared to EPS of Rs11.40 in SPLY.

The decline in profit comes amid a decline in sales during the period.

OGDC’s profit down 7% in FY24 despite higher sales

During the period, ODGCL’s revenue from contracts with customers declined to Rs106.01 billion compared to Rs120.1 billion in SPLY, which is down by nearly 12%.

The E&P’s gross profit registered a drop of 16%, clocking in at Rs65.8 billion in 1QFY25, compared to Rs77.9 billion in FY23.

Resultantly, the company’s profit margin dropped to 62% in 1QFY25, as compared to 65% in same period previous year

During the period, the E&P’s saw a significant improvement of over 58% in its other income, which stood at Rs25.7 billion in 1QFY25, as compared to Rs16.3 billion in 1QFY24.

The company’s exploration and prospecting expenses increased by over 46%.

OGDCL’s share of profit in associates clocked in at Rs3.24 billion in 1QFY25, compared to Rs2.99 billion in SPLY, an increase of nearly 9%.

OGDCL profit before tax clocked in at Rs83.12 billion in 1QFY25, registering a decrease of nearly 4% year-on-year.

Consequently, the E&P paid lower income tax to the tune of Rs32.6 billion in 1QFY25, as compared to Rs37.1 billion in SPLY, a decline of over 12%.

OGDCL was incorporated on 23 October 1997 under the Companies Ordinance, 1984. The company was established to undertake exploration and development of oil and gas resources, including production and sale of oil and gas and related activities formerly carried on by Oil and Gas Development Corporation, which was established in 1961.