PSO's earnings per share arrives at PKR 20.0 in 1QFY26

Pakistan State Oil Company Limited (PSO) announced its financial result for 1QFY26 posting a profit after tax (PAT) of PKR 9,390mn (EPS: PKR 20.0) compared to PKR 3,971mn (EPS: PKR 8.5) in SPLY, up by 136% YoY.
Net sales declined by 6% YoY to PKR 737,186mn despite higher MS and HSD volumes and prices. MS sales increased by 1% YoY to 761k tons, while HSD sales rose by 6% YoY to 675k tons during 1QFY26. Average MS and HSD prices rose YoY by PKR 2.9/ltr to PKR 266.0/ltr and PKR 7.7/ltr to PKR 276.5/ltr, respectively. The decline in topline mainly stems from the RLNG segment, where PSO’s average DES price for the quarter was USD 8.01/mmbtu, down from USD 9.91/mmbtu SPLY. The company handled a total of 28 cargoes during the quarter, the same as 4QFY25, but lower than 32 cargoes handled in the corresponding period of the previous year.
Gross profit clocked in at PKR 30,051mn, translating into a gross margin of 4.1% (highest since Sep’23) compared to 3.3% in SPLY and 2.9% in the previous quarter. The improvement is likely attributable to higher than expected inventory gains and increased sales of lubricants, we view.
On the balance sheet front, PSO’s receivables declined by PKR 42bn in 1QFY26 when compared to SPLY. Since Dec’23, receivables have reduced by PKR 122bn to PKR 426bn.
Finance costs declined to PKR ~5,952mn in 1QFY26, down 43% YoY and 13% QoQ, primarily due to lower interest rates and reduced short-term borrowings.
Other income increased by 40% YoY to PKR 4,556mn, likely on account of financial charges on line fill cost.
The company booked an effective taxation of 54.4% in 1QFY26 vs 66.1% in 1QFY25.

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