Cnergyico refines its next chapter with cleaner fuels and wider reach

October 06, 2026 (MLN): Cnergyico PK Limited (PSX: CNERGY) has laid out a three-pronged forward agenda built on upgrading its refinery, diversifying beyond road fuels into marine fuels and petrochemicals, and extending its reach through pipeline access, a growing retail network and digital customer channels.

At the center of the plan is a refinery upgrade project costing more than $1bn, structured in three phases under the 2023 Refining Policy.

The project aims to produce substantially less furnace oil and significantly more premium motor gasoline and high speed diesel, with road fuels meeting Euro V emissions standards.

According to its annual report 2026, the company said the upgrade is no longer only on paper, as four reactors, three for the first refining unit (ORC-1) and one for the hydrotreating unit at the heart of the project, were fabricated in Italy and shipped to Karachi.

These are the first major equipment for the project to reach Pakistan.

The company said the next chapter is already under way and that the focus in FY27 will move from dialogue to delivery, with deeper engagement with investors, analysts and financial institutions and more structured measurement of stakeholder and community outcomes.

On diversification, the company is developing an aromatics plant, relocated from Italy, to tap domestic demand for petrochemicals that is currently met largely through imports.

The facility is designed to produce four products at scale, including benzene, paraxylene and xylenes, which feed plastics, textiles and industrial manufacturing rather than transport.

The company also produced marine bunker fuels for the first time during the year, with Vitol Bunkers marketing them to ships refuelled directly from Karachi and Gwadar, marking its first entry into higher-value, cleaner marine fuel segments.

Operationally, average daily throughput grew 22% year-on-year, tied for the fastest growth among Pakistan's refiners.

The refinery recorded its highest-ever combined daily rate of 79,888 barrels on July 23, 2025, along with record monthly output of high speed diesel, motor gasoline, furnace oil, LPG and kerosene.

The company said these volumes directly reduce Pakistan's import burden for diesel, motor gasoline and fuel oil.

The company also secured its first cargo of US crude, one million barrels of West Texas Intermediate delivered aboard MT Pegasus, which it said was the largest tanker to have berthed at a Pakistani port at the time.

Management said the delivery widened crude sourcing options and reduced dependence on traditional import routes during a year of disruption around the Strait of Hormuz.

Its oil marketing network expanded to more than 480 fuel stations under the Byco brand, while safety performance reached 5.2mn safe man-hours.

A new sour water stripper plant treated 171,760 cubic meters of water in its first year, and the company said it remains the only one in Pakistan with active Tier III oil spill response coverage for marine operations.

Management said the operating environment will remain demanding, citing volatile global refining margins, shifting domestic demand, subdued petroleum consumption, a sharp contraction in furnace oil use and continued smuggling of petroleum products.

It added that demand for marine fuel compliant with International Maritime Organization (IMO) rules is structural, petrochemical imports remain ripe for substitution, and regulatory support for domestic refining is embedded in the 2023 policy.

On the financial front, the company swung back into profit in the fiscal year ended June 30, 2026, posting a consolidated net profit of Rs11.18bn against a net loss of Rs3.59bn a year earlier.

Earnings per share (EPS), basic and diluted, stood at Rs2.05, compared to a loss per share of Rs0.65 in FY25.

The turnaround was driven by a 38% rise in consolidated net revenue to Rs410.24bn from Rs296.72bn, while cost of sales grew a slower 34% to Rs390.68bn.

This lifted gross profit nearly 4.7 times to Rs19.56bn from Rs4.19bn, widening gross margin to about 4.8% from roughly 1.4%.

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