Karachi: Oil and Gas Development Company Limited (OGDC) has reported a substantial rise in earnings for the fourth quarter of the fiscal year 2026, driven by a reversal in tax provisions, increased hydrocarbon production, and higher oil prices. The company announced a profit after tax (PAT) of PKR 127 billion for the quarter, with earnings per share (EPS) of PKR 29.6, marking a threefold year-on-year and quarter-on-quarter increase.

According to AKD Securities Limited, the impressive financial results were primarily influenced by a sharp tax provision reversal during the final quarter. For the full fiscal year 2026, OGDC's PAT reached PKR 242.4 billion, reflecting a 43 percent increase from the previous year's PKR 169.9 billion. The company declared a final dividend per share (DPS) of PKR 6.0, bringing the cumulative DPS for the year to PKR 17.0, a 13 percent rise compared to the previous year.

Net sales for OGDC surged to PKR 149.1 billion, a 65 percent year-on-year and 39 percent quarter-on-quarter increase, attributed to higher oil prices and growth in hydrocarbon production. The average price of Arab Light crude oil was recorded at USD 103.9 per barrel, a 52 percent year-on-year increase due to ongoing geopolitical conflicts. The company reported an oil production of 35,370 barrels per day, a 24 percent rise, and a gas production of 723 million cubic feet per day, a 25 percent increase during the fourth quarter.

Exploration expenses also rose sharply to PKR 10.9 billion, a 62 percent year-on-year increase, due to intensified activities in the Kohat, Kunnar, and TAY blocks. Operating expenses increased by 44 percent year-on-year to PKR 51.4 billion, resulting in an operating profit of PKR 69.6 billion, a 62 percent increase compared to the same period last year.