Oil and Gas Development Company Limited (OGDCL), the country’s largest exploration and production (E&P) company, announced a consolidated profit of Rs73.02 billion for the half year ended December 31, 2025, down from Rs82.46 billion recorded in the previous year, registering a decline of over 11%. This translated into earnings per share (EPS) of Rs16.98, compared to Rs19.17 in 1HFY25, showed the E&P’s latest financial results provided to the Pakistan Stock Exchange (PSX) on Monday. The Board of Directors also announced an interim cash dividend for the quarter ended December 31, 2025, at Rs4.25 per share, i.e. 42.5%. This is in addition to the interim dividend already paid at Rs3.5 per share, i.e. 35%. The decline in profitability was largely due to a drop in net sales, which stood at Rs192.83 billion in 1HFY26, compared to Rs206.42 billion in 1HFY25, registering a drop of nearly 7%. OGDC’s profit down 19% in FY25 amid lower sales Gross profit also contracted significantly by 19% to Rs103.46 billion in 1HFY26, from Rs127.41 billion in the prior year. Consequently, the company’s profit margin lowered to 54% in 1HFY26, as compared to 62% in 1HFY25. Finance and other income lowered to Rs26.9 billion, i.e. 42% from Rs46.6 billion a year earlier. Meanwhile, exploration and prospecting expenditure increased to Rs11.9 billion, versus Rs7.9 billion in 1HFY25, a jump of 51%. The company’s share of profit in associates stood at Rs5.2 billion in 1HFY26, slightly higher than Rs4.6 billion in the same period last year, an increase of 11%. Before taxation, OGDCL earned Rs110.8 billion, down from Rs155.8 billion in 1HFY25. After accounting for taxation of Rs37.8 billion, net profit for the year settled at Rs73.02 billion. OGDCL was incorporated on 23 October 1997 under the Companies Ordinance, 1984. The company was established to undertake exploration and development of oil and gas resources, including production and sale of oil and gas and related activities formerly carried on by Oil and Gas Development Corporation, which was established in 1961.