Pakistan State Oil profit jumps to Rs25.56bn

Pakistan State Oil (PSO) reported a significant increase in profit after tax to Rs25.56 billion in the first quarter of fiscal year 2027, with earnings per share rising to Rs54.44 from Rs20.00 the previous year. This growth was attributed to higher sales volumes and a more favorable product mix, although it was partially offset by increased finance costs.

The company's consolidated profit for the same period reached Rs29.42 billion, including a profit of Rs6.5 billion from its subsidiary, Pakistan Refinery Ltd. PSO's petroleum sales experienced a 17.8% year-on-year increase, more than double the industry's growth rate of 7.1%, resulting in a 4.2 percentage point rise in the company's market share, now at 45.9%.

CEO Jawwad Ahmed Cheema stated that PSO's growth outpaced the market while maintaining supplies during regional disruptions. PSO's petrol sales climbed 23.2% to 968,000 tonnes, while high-speed diesel sales increased 12.8% to 759,000 tonnes, despite a decline in overall diesel demand. In a separate development, Wafi Energy Pakistan Ltd reported a profit of Rs6.5 billion in the third quarter of 2026, up from Rs3 billion the previous year, despite market volatility and supply-side pressures.

The company announced a dividend of Rs4 per share and expanded its retail presence by adding 54 Shell retail sites, 26 Shell Select stores, and nine Recharge EV charging stations. Wafi's CEO Zubair Shaikh emphasized the company's commitment to long-term value creation. Meanwhile, Indus Motor Company's net sales for the first quarter of fiscal year 2027 rose to Rs74 billion from Rs62 billion, with profit increasing to Rs7.4 billion from Rs6.7 billion.

Unit sales grew by 34% to 13,380. CEO Ali Asghar Jamali attributed the growth to higher volumes, localisation efforts, cost control, and increased other income, but cautioned that misuse of the Gift Scheme for used-car imports could harm local manufacturing and revenues. Jamali highlighted the absence of a long-term auto policy as a source of uncertainty, while also noting that higher oil prices, geopolitical risks, and exchange rate volatility could negatively impact the outlook.