ISLAMABAD: Marred by forced production curtailment, the profitability of the country’s largest oil and gas producer, Oil and Gas Development Company (OGDCL), dropped by 11 per cent to Rs115.3 billion in the first three quarters (July-March) of the current fiscal year.

While approving the financial results for the first nine months, the board of directors of the company on Wednesday declared a quarterly dividend of Rs3.25 per share — the highest third-quarter payout — taking the nine-month total dividend to Rs11 per share, the company said in a statement.

The company said it recorded net sales of Rs300.127bn for the nine months ending March 31, about 3.5pc lower than Rs311bn for the same period last year. Profit after tax amounted to Rs115.263bn in the first three quarters of FY26, compared with Rs129bn in FY25 and Rs171bn in FY24.

The Rs115bn profit in 9MFY26 translated into earnings per share (EPS) of Rs26.80. “The results were impacted by production curtailments, lower realised crude oil and LPG prices, and other market dynamics, partially offset by higher realised gas prices and exchange rate movement”, the company said. The production losses were caused by forced closure or curtailment of oil and gas producing wells due to surplus imported liquefied natural gas (LNG) in the system.

During the period, the company contributed Rs160bn to the national exchequer through corporate tax, dividends, royalties, and other government levies, while its oil and gas production generated estimated foreign-exchange savings of $2.3bn through import substitution.

Average daily net saleable production in 9MFY26 stood at 32,022 barrels of crude oil, 648 mmcfd of natural gas, and 653 tons of LPG, compared with 31,710 barrels, 676 mmcfd and 654 tonnes, respectively, in the corresponding period last year.

“Production remained affected by curtailments, which reduced daily net output by approximately 3,482 barrels of crude oil, 141 mmcfd of gas and 48 tonnes of LPG”, the company announced, adding that the extent of curtailment moderated towards the latter part of the period US-Iran war caused disruption in LNG imports.

Notwithstanding these constraints, the company’s gross crude oil production surpassed the 40,000 barrels per day milestone after a prolonged period, reflecting the impact of targeted production optimisation initiatives.

During the period, OGDCL spud 10 wells, and sustained exploration efforts yielded eight oil and gas discoveries, further strengthening the company’s resource base. OGDCL also successfully injected Baragzai X-1 well, located in Nashpa Exploration License, into the production gathering system. The well is currently producing around 6,100 barrels of oil per day, 18 mmcfd of gas, and 50 tonnes of LPG.

On the development front, Jhal Magsi Project continues to produce approximately 14 mmcfd of gas along with condensate, while Dakhni Compression Project has been successfully completed and is contributing to production enhancement. Other key development projects, including Uch and KPD-TAY compression projects, are progressing as planned.

Published in Dawn, April 30th, 2026