Karachi: Oil and Gas Development Company (OGDC) has announced a mixed financial performance for the first quarter of the fiscal year 2027, with earnings per share rising 53% year-on-year to Rs13.60 but declining 54% quarter-on-quarter. The company reported net earnings of Rs58.5 billion, surpassing expectations due to higher finance income and reduced administrative expenses.

According to AKD Securities Limited, finance income increased by 13% year-on-year to Rs13.7 billion, although it was down 13% compared to the previous quarter. The rise is attributed to increased interest income during the period. Administrative costs rose 6% year-on-year but fell 42% quarter-on-quarter to Rs2.2 billion.

OGDC's net sales for the quarter reached Rs132.4 billion, marking a 38% increase from the same period last year, driven by higher oil and gas prices, though sales were down 11% from the previous quarter. Royalty expenses were reported at Rs15.5 billion, reflecting a 47% year-on-year increase but a 10% decline quarter-on-quarter.

Exploration costs saw a significant rise of 55% year-on-year to Rs4.7 billion but decreased 56% from the previous quarter. Operating expenditures were up 14% year-on-year to Rs32.9 billion, despite a 35% quarter-on-quarter decrease. The company recorded a tax expense of Rs29.4 billion, with an effective tax rate of 33.5%.

OGDC's receivables recovery ratio fell to 99% during the quarter. The company declared an interim cash dividend of Rs5.0 per share, equating to a 37% payout. Despite the mixed results, AKD Securities Limited maintains a "buy" stance on OGDC, citing its current trading at a fiscal year 2027 estimated price-to-earnings ratio of 5.5x and a dividend yield of 7%.