KARACHI: Pakistan State Oil (PSO) said it strengthened its operational resilience, expanded its retail network and advanced its digital initiatives during FY26, while maintaining its market leadership position despite a highly competitive environment and geopolitical disruptions affecting global energy supply chains.
The update came during the company’s Corporate Briefing Session held on Thursday, where management discussed its nine-month financial performance and future outlook.
PSO had earlier reported earnings per share (EPS) of Rs81.19 for the first nine months of FY26, compared with Rs32.52 in the corresponding period of FY25, primarily supported by inventory gains and improved gross margins resulting from positive margin variance.
Management said higher administrative, distribution and other operating expenses were mainly attributable to inflationary pressures, business expansion and increased provisioning requirements. However, these were partially offset by lower finance costs due to reduced borrowings and declining interest rates.
The company also reported lower other income during the period, mainly due to a decline in dividend income and reduced recoveries from line-fill costs.
On the operational front, PSO commissioned 71 new retail outlets during the period and ensured uninterrupted fuel supplies despite disruptions linked to tensions in the Strait of Hormuz and a force majeure declaration by Karachi Port Company (KPC).
The company also accelerated its digitalisation and sustainability initiatives by becoming the first oil marketing company (OMC) in Pakistan to launch a nationwide Dual Interface Card and expanding its electric vehicle (EV) charging infrastructure to nine stations along the Karachi-Peshawar corridor.
Management said PSO’s market share remained stable at around 42-44 percent, which it considers a comfortable and sustainable level amid an increasingly competitive market environment.
The company said it was not overly concerned about aggressive price discounting by competitors, as its strategy remains focused on preserving profitability while maintaining an optimal balance between sales volumes and margins.
On outstanding receivables, management disclosed that the company has Rs68 billion due from GENCO III, of which around Rs10 billion is expected to be recovered by the end of the current fiscal year. In addition, PSO has receivables of Rs286 billion from Sui Northern Gas Pipelines Limited (SNGPL).
Management said it expects the government’s circular debt resolution plan to materialise over the next two to three years. The company also has additional claims amounting to Rs24 billion in price differential claims and Rs75 billion in sales tax refunds.
Regarding LNG imports, management said the long-term Qatar LNG contract remains intact under agreed pricing arrangements. PSO imported three to four LNG cargoes during the recent geopolitical disruptions whenever conditions permitted, reflecting procurement flexibility under constrained circumstances.
The company expects LNG imports to continue normally once the Strait of Hormuz situation stabilises, supporting energy supply security going forward.
Management further highlighted that the total limit under the FE-25 Foreign Exchange Financing Facility has been reduced from USD 1.5 billion to USD 1.2 billion, while the company is currently utilising around USD 800 million. It added that all local borrowings remain benchmarked to the Karachi Interbank Offered Rate (KIBOR).
PSO’s inventory currently stands at around 20 days of usable supply, increasing to 30-32 days when dead stock is included.
The company said future growth in other income would largely depend on movements in interest rates and the profitability of associated companies. While management aims to improve this income stream, it acknowledged that external factors remain a key determinant.
PSO also said it remains engaged with the government on industry-related targets and continues to pursue digitalisation initiatives while adopting a prudent approach toward tax provisioning, which has contributed to higher other expenses during the period.
Copyright Business Recorder, 2026
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