Oil and Gas Development Company Limited (OGDC) posted a 53 percent year-on-year increase in profit for the first quarter of FY27, with earnings reaching Rs58.5 billion (EPS: Rs13.60) compared to Rs38.3 billion (EPS: Rs8.91) in the corresponding period last year.

According to a report by Arif Habib Limited (AHL) Research, the strong performance was driven by a 38 percent rise in net sales to Rs132.4 billion, supported by higher oil and gas production and stronger crude oil prices.

The research house noted that OGDC’s cash and short-term investments climbed to a record Rs365.5 billion, while other income increased 13 percent to Rs13.7 billion during the quarter.

OGDC also announced an interim cash dividend of Rs5 per share. AHL Research maintained its “Buy” recommendation on the stock, citing attractive valuations and the company’s strong cash position.

“Earnings growth was primarily driven by higher production, stronger hydrocarbon prices and increased other income supported by a record cash position,” AHL Research said.