Pakistan State Oil Company Limited (PSO) has announced a profit after tax (PAT) of Rs. 9.39 billion for the first quarter of fiscal year 2026. This marks a significant increase from Rs. 3.97 billion recorded in the same period last year. The company’s earnings per share (EPS) rose to Rs. 20.0, up 136 percent year-on-year.
According to Arif Habib Ltd., the improvement in PSO’s profitability was driven by higher inventory gains, stronger gross margins, and a sharp decline in finance costs. Despite these gains, the company’s net revenue fell 6 percent year-on-year to Rs. 737.2 billion due to lower sales volumes of high-speed diesel and furnace oil.
However, motor spirit (MS) sales increased by 1 percent to 761,000 tons, while high-speed diesel (HSD) sales rose 6 percent to 675,000 tons. The average prices of MS and HSD were also higher by Rs. 2.9 and Rs. 7.7 per liter, respectively, compared to last year.
Gross profit grew 19 percent year-on-year to Rs. 30.05 billion, resulting in a gross margin of 4.1 percent — the highest since September 2023. The increase was mainly supported by improved inventory gains and better pricing in the lubricant segment.
Finance costs dropped 43 percent to Rs. 5.95 billion, reflecting lower short-term borrowings and a decline in interest rates. Other income rose by 40 percent to Rs. 4.55 billion, boosted by financial charges on line-fill costs.
On the balance sheet side, PSO’s receivables fell by Rs. 42 billion during the quarter to Rs. 426 billion, showing improved recovery performance. The company recorded an effective tax rate of 54.4 percent in 1QFY26, compared to 66.1 percent in the same quarter last year.
PSO’s strong results indicate financial stability and improved operational efficiency as it continues to navigate a challenging energy market environment.
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