Oil and Gas Development Company Limited (OGDC) posted a 42.8 percent increase in earnings per share (EPS) to Rs56.35 in fiscal year 2026 (FY26), while its dividend payout to shareholders reached a record Rs17 per share.

The company’s EPS stood at Rs39.5 in FY25. The growth was supported by a 25 percent increase in oil production and a 17 percent rise in gas production on a Year-on-Year (YoY) basis, along with a one-off reversal of the super tax provision.

OGDC’s earnings for the fourth quarter of FY26 (4QFY26) reached Rs29.55 per share, nearly three times the level recorded in the same period last year.

The company generated net sales of Rs149.1 billion during the quarter, registering growth of 65 percent YoY and 39 percent Quarter-on-Quarter (QoQ). The increase was mainly driven by production starting at the Baragzai field and higher crude oil prices.

For FY26, OGDC’s revenue rose 12 percent YoY to Rs449.2 billion.

Royalty expenses surged 699 percent YoY to Rs17.2 billion in 4QFY26, with royalties accounting for around 12 percent of quarterly net sales.

Exploration expenses increased 2.6 times YoY and 1.8 times QoQ to Rs10.9 billion after two wells, Chak-203 and Saidpur, were classified as dry.

Operating expenses (OPEX) stood at Rs50.9 billion, up 45 percent YoY. OPEX per barrel of oil equivalent (BOE) increased to US$11.6 from US$10.0 in 4QFY25 and US$7.6 in 3QFY26.

OGDC also recorded a Rs44 billion reversal of tax expense during the quarter following the Federal Constitutional Court’s decision concerning the super tax. As a result, the company’s Effective Tax Rate (ETR) for FY26 fell to 6 percent from 39 percent in FY25.

The company’s receivables recovery ratio improved to 103 percent in 4QFY26 from 86 percent in the previous quarter. The stronger recovery was likely supported by higher collections from Sui companies. The ratio has remained above 100 percent for the past two years.

OGDC declared a final cash dividend of Rs6 per share for the fourth quarter, taking its total dividend for FY26 to a record Rs17 per share. The full-year payout ratio stood at 30 percent, compared with 38 percent in FY25.

The company is currently trading at estimated price-to-earnings multiples of 6.1 times for FY27 and 5.2 times for FY28.