AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Pakistan’s oil and gas exploration and production (E and P) sector is expected to experience a 6% year-on-year decline in earnings for the first quarter of the fiscal year 2026, according to a recent analysis by AKD Securities Limited. The decrease is primarily attributed to reduced hydrocarbon production, lower oil and wellhead gas prices, and the incurrence of royalty charges by MARI.
The production levels for oil and gas have decreased by 6% and 7% respectively, with oil production recorded at 61.4 thousand barrels per day and gas production at 2.8 billion cubic feet per day. This data reflects the ongoing supply curtailments impacting the sector.
Despite the downturn in earnings, there is some positive news regarding liquidity. The Oil and Gas Development Company (OGDC) has begun receiving payments of accrued interest from Power Holding Ltd. This follows the restructured settlement of an 82 billion Pakistani Rupees Term Finance Certificate (TFC), which has bolstered OGDC’s liquidity alongside its operational inflows for the quarter.
AKD Securities has issued a ‘Buy’ recommendation for OGDC, Pakistan Petroleum Limited (PPL), and Pakistan Oilfields Limited (POL). The target prices for December 2025 are set at 371, 281, and 800 Pakistani Rupees per share, respectively.