Karachi: Oil & Gas Development Company Ltd (OGDC) announced a significant increase in its first-quarter profitability for the fiscal year 2027, with reported earnings of PkR58.5 billion, marking a 53% rise compared to the same period last year. This upswing is attributed to increased hydrocarbon production and reduced operating expenses.

According to AKD Securities Limited, the financial results surpassed expectations, driven by a 38% increase in net sales, which reached PkR132.4 billion. The growth was fueled by higher oil prices, realized wellhead gas prices, and enhanced hydrocarbon production. Specifically, oil production rose to 35,800 barrels per day, and gas production increased to 886 million cubic feet per day, reflecting 14% and 10% year-on-year growth, respectively. Additionally, the company declared an interim cash dividend of PkR5.0 per share, a 43% increase from the previous year.

The report from AKD Securities Limited also highlighted that Arab light oil prices saw a 26% increase, averaging US$90.1 per barrel during the period. The favorable financial performance has led to a reiterated 'BUY' recommendation for OGDC, with a target share price of PkR512 by December 2026. Factors supporting this outlook include strong production capabilities, promising exploration prospects, a stake in the Reko Diq Mining Project, offshore interests in Abu Dhabi, and improved cash payouts.