KARACHI: Pakistan’s listed refinery sector has posted a combined profit of Rs54.8 billion in FY2025-26, compared with a loss of Rs10.5 billion in the previous fiscal year, as wider petrol and diesel refining margins and higher sales volumes drove a sharp recovery in earnings.
The sector’s revenue increased 27 percent year-on-year (YoY) to Rs1.54 trillion from Rs1.22 trillion in FY25, while gross profit surged to Rs107.4 billion from Rs10.4 billion. As a result, the sector’s gross profit margin improved to 7.0 percent from 0.9 percent, while the net profit margin stood at 3.6 percent.
The increase in revenue was supported by higher fuel prices, with ex-refinery prices of motor spirit (petrol) rising 17 percent YoY and high-speed diesel (HSD) prices increasing 19 percent.
READ ALSO: Four oil refineries sign upgrade agreements
Refinery activity also recovered during the year, with total petroleum product output rising 13.4 percent to 11.2 million tonnes, lifting overall capacity utilisation to 55 percent from 48 percent in FY25.
Diesel production increased 17.2 percent, while petrol output rose 12.4 percent during the year. The production mix consequently shifted further towards diesel, which accounted for 50.3 percent of total output compared with 48.6 percent a year earlier.
Meanwhile, furnace oil’s share of production declined to 21.1 percent from 23.1 percent, while jet fuel’s contribution increased to 4.9 percent from 4.4 percent.
Total refinery sales rose 8.6 percent to 10.8 million tonnes. Diesel sales increased 13.6 percent and petrol sales grew 11 percent, whereas furnace oil sales declined 7.8 percent amid weaker demand from the power sector.
According to Arif Habib Limited, the expansion in refining spreads was a key factor behind the sector’s earnings turnaround. The diesel margin against Arab Light crude increased to USD 29 per barrel from USD 9.7 per barrel a year earlier, while the comparable petrol margin rose to USD 7.4 per barrel from USD 2.9.
The report attributed part of the sharp increase in diesel margins to supply disruptions and procurement difficulties following the onset of the US-Iran conflict in March 2026.
At the individual-company level, Attock Refinery Limited (ARL) reported a profit of Rs22.1 billion, up 85 percent YoY, and declared a cash dividend of Rs17.50 per share.
Pakistan Refinery Limited (PRL) posted a profit of Rs15.8 billion, compared with a loss of Rs4.7 billion in FY25. The company’s earnings improved on the back of stronger refining margins despite a 1.7 percent decline in sales volume.
Cnergyico PK also returned to profitability, reporting a profit of Rs10.8 billion against a loss of Rs2.9 billion a year earlier. Its petroleum product sales increased 12.3 percent during the year.
National Refinery Limited (NRL) earned Rs6.2 billion compared with a loss of Rs14.9 billion in FY25. According to the report, NRL’s earnings were affected by approximately Rs13.5 billion in policy and accounting charges.
The sector’s earnings recovery was largely concentrated in the first three quarters, with profitability weakening sharply in the final quarter. Sector-wide gross profit fell to Rs8.0 billion in 4QFY26 from Rs72.2 billion in the preceding quarter.
Despite the decline in quarterly gross profit, fourth-quarter sector revenue increased 27 percent to Rs530.8 billion, according to the Arif Habib Limited report.
Copyright Business Recorder, 2026
Comments