Oilboy Energy swings to profit in 1HFY26

March 02, 2026 (MLN): Oilboy Energy Limited (PSX:OBOY) reported a successful turnaround for the half year ended December 31, 2025, posting a net profit of Rs733,700.

This marks a significant recovery from the hefty net loss of Rs13.77m recorded in the same period last year.

The company's earnings per share (EPS) edged into positive territory at Rs0.01, reversing a loss per share of Rs0.55 in the corresponding period of the previous year.

This turnaround was almost entirely driven by an extraordinary improvement in core gross margins, which more than compensated for a sharp drop in overall sales volume.

The company's top-line took a major hit, with net sales plunging 49% year-on-year to Rs102.59m from Rs201.46m.

However, the cost of sales plummeted at an even faster pace of 57%, dropping to Rs87.47m from Rs201.19m.

Because the reduction in direct costs was so drastic, gross profit skyrocketed reaching Rs15.12m compared to a meager Rs274,159 in the prior period.

Consequently, the gross profit margin expanded massively to 14.7% from a virtually break-even 0.13% in H1 FY2025, indicating a major shift toward higher-margin business or extreme cost efficiency.

On the operating side, administrative expenses remained flat, edging up slightly by less than 1% to Rs12.66m from Rs12.62m.

The company saw its other income virtually disappear, dropping 99.7% to just Rs20,624 from Rs6.21m last year, and booked a minor new other expense of Rs70,395.

Despite the loss of other income, the sheer strength of the expanded gross profit pushed the company into an operating profit of Rs2.41m, a sharp reversal from the Rs6.13m operating loss recorded last year.

Below the operating line, the company found massive relief as finance costs were nearly wiped out, plunging 99.6% to just Rs21,161 from Rs5.19m.

The company booked a taxation expense of Rs1.59m, a 9% decrease from the Rs1.76m tax charge in the corresponding period last year.

This left the company with a final, positive bottom line of Rs733,700, proving that margin control triumphed over falling sales volumes in the first half of the year.

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