Hascol Petroleum narrows half-year loss to Rs3bn

August 25, 2026 (MLN): Hascol Petroleum Limited (PSX: HASCOL) recorded a 36% reduction in its consolidated net loss for the half year ended June 30, 2026, with loss for the period narrowing to Rs3.10bn from Rs4.87bn in the corresponding period last year.

Showing this improvement, the company's loss per share basic and diluted narrowed to Rs3.11 from Rs4.88 in 2HFY25, while loss per share from continuing operations improved to Rs3.12 from Rs4.86.

The top-line showed steady growth, with net sales rising 10% year-on-year to Rs101.85bn from Rs92.95bn.

Sales tax declined 27% to Rs24.09m, and other revenue eased 5% to Rs218.14m, bringing net revenue up 10% to Rs102.04bn from Rs93.15bn in the prior period.

Cost of products sold rose at a slightly faster pace of 11% to Rs100.78bn, causing gross profit to contract by 44% to Rs1.26bn from Rs2.25bn — reflecting margin compression as cost growth outpaced revenue expansion.

On the operating expenditure front, distribution and marketing expenses declined 12% to Rs1.97bn, and administrative expenses fell 6% to Rs568.95m.

The combined operating expenditure subtotal dropped 10% to Rs2.54bn from Rs2.84bn, providing meaningful relief. Impairment losses on financial assets swung to a gain of Rs18.33m from a charge of Rs17.10m last year.

Other expenses surged to Rs102.65m from Rs8.76m. Other income, however, surged fivefold to Rs1.81bn from Rs363.52m a standout positive development that drove the operating line from a loss of Rs250.43m last year to an operating profit of Rs449.77m in the current period.

Below the operating line, finance cost declined modestly by 3% to Rs3.36bn from Rs3.46bn. Exchange gain swung to a net gain of Rs112.44m from a net loss of Rs827.19m last year a significant positive turnaround.

Share of profit from associate grew 11% to Rs38.93m. The combined below-operating subtotal narrowed by 25% to Rs3.21bn from Rs4.26bn. These movements reduced the loss before income tax and levy from continuing operations by 39% to Rs2.76bn from Rs4.51bn.

Final taxes recorded no charge in the current period. Minimum tax differential rose marginally by 2% to Rs356.37m. Loss for the period from continuing operations narrowed 36% to Rs3.12bn from Rs4.86bn, with no income tax charge recorded in either period.

From discontinued operations, the company recorded a profit before tax of Rs23.71m against a loss of Rs8.37m in the prior period. After taxation of Rs6.88m, profit from discontinued operations came in at Rs16.83m, reversing a loss of Rs16.44m last year.

Taking both continuing and discontinued operations together, loss for the period narrowed 36% to Rs3.10bn from Rs4.87bn for the half year.

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