Oil and Gas Development Company Limited (OGDC) has reported a 53% increase in quarterly profit for fiscal year 2027.

The company’s net profit reached Rs. 58.5 billion during the quarter ending September 2026.

This marks a significant increase from Rs. 38.3 billion recorded during the same period last year.

The improvement was mainly supported by higher oil and gas production and increased income from financial investments.

According to its filing with the Pakistan Stock Exchange (PSX), earnings per share increased to Rs. 13.60.

The company had reported earnings per share of Rs. 8.91 during the corresponding quarter last year.

The board also announced a dividend of Rs. 5 per share for shareholders.

Revenue Increases by 38% as Production Grows

The company’s net sales increased by 38% year-on-year to Rs. 132.4 billion.

Higher production volumes played an important role in supporting revenue growth.

Oil production increased by 13%, while natural gas production rose by 17% during the quarter.

The company also benefited from higher international oil prices and increased liquefied petroleum gas (LPG) revenue.

Arab Light crude oil prices increased by 26% to $90.07 per barrel during the reported period.

These factors helped strengthen the company’s overall financial performance.

Meanwhile, exploration expenses increased by 55% compared with the same quarter last year.

The increase was mainly linked to higher spending on exploration and prospecting activities.

However, the company reported no dry wells during either period.

Cash Reserves Reach Record Rs. 365.5 Billion

OGDC also recorded substantial growth in its cash reserves and short-term investments.

The combined value reached a record Rs. 365.5 billion during the first quarter of fiscal year 2027.

This compares with Rs. 222 billion recorded during the corresponding period last year.

On a per-share basis, cash and short-term investments increased from Rs. 52 to Rs. 84.98.

According to Arif Habib Limited, higher returns on financial assets contributed to increased other income.

Other income rose by 13% year-on-year to Rs. 13.7 billion.

The increase provided additional support to the company’s quarterly earnings.

Trade Receivables Decline as Recoveries Continue

The company reported a recovery ratio of 99% during the first quarter of fiscal year 2027.

Its trade receivables declined to Rs. 595.5 billion from Rs. 612 billion a year earlier.

The recovery ratio stood at 101% during the corresponding quarter of fiscal year 2026.

The decline in receivables indicates a reduction in outstanding payments during the reported period.

Company Increases Investment in Major Projects

The energy company also increased investment in the Reko Diq and PIOL projects.

Additional investment reached Rs. 5 billion during the first quarter of fiscal year 2027.

This compares with Rs. 1 billion invested during the same period last year.

The increase reflects higher spending on these investment initiatives.

Profit Margins Improve During First Quarter

The company’s gross profit margin increased to 62.7% from 58.5% a year earlier.

Its net profit margin also improved to 44.2%, compared with 39.8% in the previous year.

Return on equity stood at 14.8%, while return on assets reached 12.6%.

The effective tax rate was recorded at 33.5% during the quarter.

Meanwhile, the dividend payout ratio stood at approximately 37%.

The latest financial results show stronger earnings, supported by production growth and higher investment income.

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The company also maintained substantial cash reserves while continuing investment in major energy projects.