PSO Profit Falls 28% to Rs15.1bn in 2025-26

KARACHI: Pakistan State Oil Company Limited (PSO) has reported a significant decline in its annual profit for the fiscal year ended June 30, 2026, with net profit falling nearly 28% year-on-year to Rs15.09 billion.

According to the company’s unconsolidated statement of profit or loss, PSO posted a profit of Rs15.09 billion in FY2026, compared with Rs20.91 billion recorded in the previous fiscal year.

The company’s earnings per share also declined to Rs32.10 during fiscal year 2026 from Rs44.54 in fiscal year 2025.

PSO’s net sales stood at Rs3.05 trillion during the year under review, compared with Rs3.15 trillion a year earlier, showing a decline of around 3.2%.

Despite the lower sales, the company’s gross profit increased to Rs99.94 billion in fiscal year 2026 from Rs96.71 billion in fiscal year 2025. Other income, however, declined to Rs17.52 billion from Rs22.13 billion in the previous year.

The company’s operating costs increased during the year. Distribution and marketing expenses rose to Rs23.01 billion from Rs21.08 billion, while administrative expenses increased to Rs8.40 billion from Rs7.43 billion.

Other operating expenses also increased to Rs6.08 billion compared with Rs4.13 billion a year earlier, taking total operating costs to around Rs37.50 billion from Rs32.64 billion.

PSO’s finance costs declined to Rs25.66 billion in FY2026 from Rs33.72 billion in FY2025, providing some relief to the company’s bottom line.

The oil marketing company reported a loss from its share of associates, net of tax, amounting to Rs110.85 million during FY2026, compared with a profit of Rs314.40 million in the previous year.

Profit before taxation, minimum tax differential and final taxes increased to Rs54.20 billion from Rs52.78 billion.

However, the company faced a substantially higher tax burden during the year. Minimum tax differential stood at Rs7.25 billion, while final taxes amounted to Rs89.47 million, taking total taxation to around Rs31.79 billion compared with Rs20.12 billion in FY2025.

After taxation, PSO’s profit for the year stood at Rs15.09 billion, down from Rs20.91 billion a year earlier.

The financial results indicate that despite an improvement in gross profit and lower finance costs, the decline in sales, higher operating expenses, lower other income and a significantly higher tax burden weighed on PSO’s overall profitability.