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The company’s latest results, announced on the Pakistan Stock Exchange on Friday, September 4, also brought good news for shareholders as OGDC recommended a final cash dividend of Rs6 per share, taking the total dividend for FY26 to Rs17 per share — the highest annual payout in the company’s history.
OGDC’s earnings per share (EPS) increased to Rs56.35 in FY26, compared with Rs39.50 in FY25, representing a year-on-year improvement of approximately 43%.
The increase in earnings was supported by higher revenue as well as a significant reduction in taxation. Revenue from contracts with customers rose nearly 12% to Rs449.19 billion, from Rs401.18 billion in the previous financial year.
However, the bottom-line growth was considerably stronger than the increase in revenue. This was partly because taxation fell by roughly 85%, with the tax charge declining to around Rs16.76 billion from Rs109.41 billion a year earlier. That means investors should distinguish between the company’s underlying operational improvement and the boost provided by lower tax expenses.
The biggest highlight for income-focused investors is OGDC’s dividend announcement.
The company recommended a final dividend of Rs6 per share, taking the cumulative FY26 payout to Rs17 per share, compared with Rs15.10 per share in FY25.
That represents a dividend growth of approximately 12.6% year on year.
In other words, while EPS expanded by around 43%, the annual dividend increased by a more moderate 13%. The result nevertheless marks a new record for OGDC and reinforces the company’s position as one of the key dividend-paying stocks on the Pakistan Stock Exchange.
The final quarter was particularly impressive.
OGDC reported 4QFY26 EPS of Rs29.55, compared with around Rs9.37 per share in the same quarter of FY25. On a sequential basis, EPS also jumped sharply from Rs9.82 in 3QFY26.
Quarterly sales reached approximately Rs149.1 billion, up 65% year on year and 39% from the preceding quarter, according to market analysis. The improvement was linked partly to the commencement of production from the Baragzai field and higher crude oil prices.
The financial performance was not based solely on accounting gains.
OGDC has been expanding production through new wells and optimization initiatives. The company brought the Baragzai X-1 well into production during April 2026, with initial production reported at around 5,300 barrels of oil per day, 17 million standard cubic feet of gas per day and 15 metric tons of LPG per day.
Earlier in the year, OGDC also reported that production optimization initiatives had added to crude oil, natural gas and LPG output, while its gross crude oil production crossed the 40,000-barrels-per-day mark after a prolonged period below that level.
These developments provide a more fundamental backdrop to the company’s improved earnings performance.
The FY26 result presents a mixed but broadly positive picture.
On the positive side, revenue grew 12%, EPS rose 43%, quarterly earnings accelerated sharply and the annual dividend reached a record Rs17. The combination of higher production, new field contributions and improved earnings provides a constructive outlook for the company.
The main point of caution is the tax impact. Since the decline in taxation was much larger than the growth in revenue or gross profit, a portion of the exceptional increase in net profit may not necessarily repeat at the same magnitude in the coming year.
Gross profit increased by a comparatively modest 6.5% to Rs246.76 billion, while operating expenses increased by about 23%. This suggests that investors should pay close attention to production growth, realized oil and gas prices, cost control and future tax charges when assessing the sustainability of FY26 earnings.
Overall, OGDC has closed FY26 with a powerful headline performance.
EPS has climbed from Rs39.50 to Rs56.35, while annual DPS has increased from Rs15.10 to a record Rs17.00. Revenue has also moved higher, and the company has made progress on production through new discoveries and field developments.
For shareholders, the message is straightforward: OGDC has delivered stronger earnings and an even bigger payout.
The next question for the market will be whether the company can maintain this earnings momentum without relying heavily on one-off tax benefits.
OGDC’s FY26 story, therefore, is not simply about a 43% jump in profit — it is about stronger production, a record dividend and the challenge of turning this year’s exceptional performance into sustainable earnings growth.
Earnings surge, payouts climb — OGDC closes FY26 on a powerful note. Oil & Gas Development Company Limited (OGDC) has delivered a strong financial performance for fiscal year 2025-26, with annual profit after tax rising sharply by 42.7% to Rs242.37 billion, compared with Rs169.90 billion a year earlier.
