HASCOL narrows net loss by 42% in CY25

March 31, 2026 (MLN): Hascol Petroleum Limited (PSX: HASCOL) reported a significant improvement in its financial health for the year ended 2025, narrowing its total net loss by 42% to Rs6.77bn, compared to a massive net loss of Rs11.63bn in the previous year.

Accordingly, the company's loss per share (LPS) narrowed to Rs6.78 from Rs11.64 in the corresponding period.

This recovery was anchored by robust top-line growth, a swing into operating profit, and a substantial reduction in the company's crippling finance costs.

Hascol's net revenue grew by 23% year-on-year to Rs177.46bn from Rs144.28bn.

Cost of sales also increased by 23% to Rs173.88bn. Because revenue growth kept pace with the rise in direct costs, gross profit grew 7% to Rs3.58bn from Rs3.34bn in the prior year.

On the operating side, the company faced some inflationary pressures. Operating expenses rose 15% to Rs5.14bn. Other income also declined by 20% to Rs2.59bn.

However, Hascol experienced two major positive catalysts at the operational level.

First, it booked a reversal for expected credit loss on trade debts amounting to Rs239.63m, compared to an allowance (loss) of Rs67.11m last year. Second, "other expenses" plummeted by a staggering 97%, dropping to just Rs73.60m from a hefty Rs2.61bn.

These two factors completely transformed the company's operational standing, allowing it to post an operating profit of Rs1.20bn, a sharp turnaround from the operating loss of Rs553.47m recorded in the previous year.

Below the operating line, Hascol found massive relief in its debt servicing. Finance costs were slashed by 36%, falling to Rs6.78bn from the heavy Rs10.54bn burden seen last year.

The company did suffer a net exchange loss of Rs535.51m (a reversal from an exchange gain of Rs211.26m last year), but it managed to secure a minor share of profit from associates of Rs10.97m.

Overall, the loss before income tax from continuing operations was effectively cut down by 44% to Rs6.11bn from Rs10.92bn. After accounting for a minimum tax differential of Rs629.41m, the loss after tax from continuing operations stood at Rs6.74bn.

Finally, factoring in a much smaller loss from discontinuing operations (Rs29.87m, down 74% year-on-year), Hascol concluded the year with a total net loss of Rs6.77bn.

While still in the red, the 42% reduction in net losses marks a critical step toward financial stabilization.

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