Pakistan Upstream Energy: OGDC & PPL Post Solid Operational Cash Flows and Payouts

Energy Blue Chips in the Spotlight

Shares of Oil & Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) anchored transaction volumes at the PSX as institutional portfolios factored in enhanced dividend payout visibility.

Drivers for Upstream Exploration

• Gas Tariff Rationalization: Upstream collection efficiency has notably improved following structural tariff adjustments implemented across industrial zones.
• Exploration Capex: Exploration blocks in Sindh and Balochistan reported stable crude and natural gas throughput.
• Dividend Yield Floor: Blended dividend yields for the oil exploration basket hover between 11% and 13%, offering compelling risk-adjusted income against sovereign paper.