Oil & Gas Profits Set to Dip in Latest Quarter, Here’s Why?

Pakistan’s oil and gas exploration sector is heading into a weaker earnings season for April–June 2025 (4QFY25). Analysts expect overall profits for the big four listed companies, OGDC, PPL, POL, and MARI, to fall by about 19% compared to the same quarter last year.

The main culprits? Lower oil and gas production and weaker international oil prices. Arab Light crude prices dropped 21% from last year, while oil output fell 15% and gas production was down 7%.

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Here’s the breakdown of expected performance:

• OGDC – EPS of Rs 8.34, down 5% YoY.
• PPL – EPS of Rs 7.20, up 10% YoY (the only one showing growth, thanks to lower exploration costs).
• POL – EPS of Rs 20.65, down 36% YoY.
• MARI – EPS of Rs 10.21, down 52% YoY (hit hard by higher royalty charges).

Despite the slowdown, investors can still expect dividends:

• OGDC: Rs 4.5 per share
• PPL: Rs 3 per share
• POL: Rs 45 per share
• MARI: Rs 17 per share

The takeaway? Oil prices and production levels remain the key swing factors for these companies. While PPL managed to buck the trend this quarter, the rest are feeling the pressure from global market shifts.

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →

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