OGDC’s FY25 Profit Declines to Rs170 Billion Despite Record Dividend Payout

September 23, 2025:

Oil & Gas Development Company Limited (PSX: OGDC), Pakistan’s largest exploration and production company, announced its financial results for the year ended June 30, 2025, reporting a profit after tax (PAT) of Rs169.90 billion, reflecting an 18.7% decline compared to Rs208.98 billion in FY24.

The company’s earnings per share (EPS) fell to Rs39.50, down from Rs48.59 recorded in the previous year.

Dividend Announcement – Highest Ever Payout

Despite the decline in profitability, OGDC’s Board of Directors approved a final cash dividend of Rs5 per share (50%). This is in addition to the interim dividend of Rs10.05 per share already paid during the year.

• Total dividend for FY25: Rs15.05 per share – the highest-ever annual distribution in OGDC’s history.

Revenue and Profitability Pressure

• Net sales for FY25 fell by 13.48% to Rs401.18 billion, compared to Rs463.70 billion in FY24, primarily due to weaker oil and gas production volumes and lower average prices.
• Gross profit dropped 18.25% year-on-year, reaching Rs231.61 billion against Rs283.31 billion in FY24.

This decline in topline performance was the main driver behind the reduced profitability.

Operational and Financial Highlights

• Operating expenses were effectively managed, decreasing 2.71% to Rs120.20 billion.
• A major positive came from finance and other income, which nearly doubled (up 97.90%) to Rs81.82 billion, compared to Rs41.34 billion in FY24, supported by higher returns on cash and investments.
• Finance costs reduced significantly by 18.72%, standing at Rs5.81 billion.
• Consequently, profit before taxation closed at Rs279.31 billion, only 4.93% lower than last year’s Rs293.79 billion.

Impact of Higher Taxation

The steeper fall in net profit was largely due to higher taxation, which rose 29.01% to Rs109.41 billion, versus Rs84.83 billion in FY24.

Outlook

OGDC remains a key player in Pakistan’s energy sector, with continued focus on exploration activities and investment in new fields to stabilize production levels. Despite short-term revenue pressures, the company’s strong balance sheet and record dividend payout underline its resilience and shareholder value commitment.