E&P sector: Stronger earnings, but challenges persist

Business Recorder reported that Pakistan’s four listed exploration and production companies earned a combined Rs113.7 billion in 1QFY27, 43 percent more than a year earlier. Their sales rose 32 percent to Rs279 billion, with higher international crude prices, increased output and improved gas price realisations supporting the results.

OGDC’s profit advanced 53 percent to Rs58.5 billion, while PPL earned Rs25.2 billion, MARI Rs21.8 billion and POL Rs8.2 billion. Yet combined exploration expenses climbed 45 percent to Rs10.2 billion, and receivables remain sizeable, particularly at OGDC and PPL. The report also notes that quarterly profitability fell around 47 percent from the previous quarter, partly because one-off tax reversals had boosted FY26 results.