OGDC Reports Decline in Sales Amid Lower Oil Prices and Production Challenges

Islamabad: The Oil & Gas Development Company Ltd (OGDC) reported a significant decrease in net sales for the fiscal year 2025, attributed to declining oil prices and forced production curtailments. The company’s net sales fell to PkR401 billion, marking a 13% year-over-year drop, as revealed during its recent analyst briefing.

OGDC’s net profit after tax (NPAT) also declined by 19% year-over-year to PkR170 billion, with earnings per share (EPS) at PkR39.5. In the first quarter of FY25 alone, earnings were recorded at PkR38.3 billion (EPS: PkR8.9), reflecting a 7% year-over-year decrease. Despite the downturn, the company declared a dividend of PkR3.5 per share for the first quarter.

Production figures for the fiscal year further illustrate the challenges faced by OGDC. The company reported a 6.6% decline in crude oil production, amounting to 30,919 barrels per day. Natural gas and LPG production also saw reductions, with outputs of 652 million cubic feet per day and 642 tons per day, respectively, each down over 9% from the previous year.

The company indicated that in the absence of forced curtailments by SNGPL and Uch Power Ltd, production volumes from key fields such as Nashpa, Chanda, and Uch could have increased significantly. Potential increases were estimated at 1,800 barrels per day of oil, 91 million cubic feet per day of gas, and 72 tons per day of LPG.

OGDC’s recoverable reserves as of June 2025 stand at 118 million barrels of oil equivalent and 5.8 trillion cubic feet of gas, comprising 49% and 31% of the national reserves, respectively. The company’s future outlook remains focused on optimizing production and exploring new opportunities to stabilize its financial performance.