Pakistan State Oil’s first-quarter profit reaches 31.92 billion rupees
Key Facts
Pakistan State Oil said consolidated profit reached 31.92 billion rupees in the three months ended September 30, 2026, compared with 11.18 billion rupees in the same period a year earlier. Basic and diluted earnings per share rose to 62.66 rupees from 22.43 rupees. The results show gross profit improving faster than sales growth, lifting the gross profit margin to 8.42% from 4.37%. Net sales rose 16.2% to 896.60 billion rupees.
This growth outpaced the increase in sales, as the cost of products sold rose more slowly than revenue. As a result, the gross profit margin nearly doubled during the period. The figures reflect an improvement in returns on sales before operating expenses, financing costs and taxes. This comparison provides context for the quarterly profit surge, showing that revenue growth alone was not as large as the change in gross profit.
Financing costs also rose 5.2% to 7.31 billion rupees. Total taxes reached 23.44 billion rupees, up 153.1% from the same period. These items show that the improvement in gross profit coincided with substantial increases in some expenses and taxes. Net profit therefore remains linked to movements in these costs, alongside sales growth and the wider margin.
At the market level, the company held a 45.9% share of Pakistan’s oil marketing companies market in July and August of fiscal year 2027, compared with 41.8% in the same two months a year earlier, according to coverage by Nukta. At its annual meeting, management said market share had recovered to more than 40%, with most of the gains recorded since July 2026. Management attributed the improvement to product availability, pricing discipline and supply chain execution. It expected fuel sales across the sector to remain largely stable or post modest growth. It added that higher oil prices, government austerity measures and the spread of electric vehicles and solar power were weighing on demand.
Circular debt remains an issue the company is working to address. Pakistan State Oil said it was working with the federal government and the International Monetary Fund on a plan to settle outstanding dues. Officials said the company’s receivables had not increased since February 2024. Management also reported receiving about 10 billion rupees in circular debt payments from the power sector after the end of the financial year, and 26 billion rupees from SNGPL during its final quarter. On supplies, management said local refineries meet about 95–97% of domestic demand for high-speed diesel, and that the company had imported four to five diesel cargoes since March 2026. The company has received 11 liquefied natural gas cargoes from QatarEnergy since March under existing contracts, while winter supplies are being planned in coordination with the government.
Management said it expected to complete requirements for retail outlet automation, including automatic tank gauging systems, by March 2027, potentially qualifying the company for higher oil marketing company margins. For domestic sourcing, the board approved the renewal of a five-year purchase and sale agreement with Attock Refinery, covering the period from July 1, 2025, to June 30, 2030. Meanwhile, the liquefied natural gas business faces an effective tax burden of more than 50%, according to The News, mainly linked to a minimum 1% tax on revenue; the business also becomes loss-making after financing costs. Pakistan State Oil, SOCAR and the Frontier Works Organisation are negotiating commercial terms and tariffs for the White Oil Pipeline to Peshawar project. The News said negotiations were nearing completion, with issues still outstanding before construction is expected to begin.