Islamabad: Oil & Gas Development Company Ltd (OGDC) reported a significant increase in its net profit for the first quarter of the fiscal year 2027, achieving a 53% year-on-year growth. The company recorded a net profit of PkR58.5 billion, translating to earnings per share of PkR13.6. This rise was attributed to higher average realized prices and enhanced hydrocarbon production. OGDC also declared its highest quarterly interim dividend of PkR5.0 per share, compared to PkR3.5 per share in the same period last year.

According to AKD Securities Limited, the average realized prices for the quarter were recorded at US$74.9 per barrel for crude oil, marking a 30% increase year-on-year. Natural gas prices rose by 11% to PkR796.1 per mmbtu, and LPG prices increased by 18% to PkR173.4k per ton. The company reported a 100% receivables collection during the quarter, as stated by its management.

AKD Securities reiterated a 'BUY' stance on OGDC with a target price of PkR522 per share by December 2026, alongside a forecasted dividend yield of 6.2% for FY27. The positive outlook is bolstered by a robust production profile, improved exploration prospects due to better liquidity, an 8.3% stake in the Reko Diq Mining Project, offshore interests in Abu Dhabi's Block-5, enhanced cash payouts, and potential joint ventures with U.S. firms for shale reserve exploration.