PNSC profit declines 30% in 1HFY26

February 23, 2026 (MLN): Pakistan National Shipping Corporation (PSX:PNSC)  reported a net profit of Rs5.88bn for the half year ended December 31, 2025, a 30% decline from the Rs8.38bn profit recorded in the same period last year.

The company's earnings per share decreased to Rs29.67 from Rs42.29 in the corresponding period of the previous year, while dividend was declared at Rs5 per share.

The shipping company's revenue increased modestly by 5% year-on-year to Rs20.82bn from Rs19.85bn. Income from shipping business, which forms the core revenue stream, grew 9% to Rs18.98bn from Rs17.38bn, while other operating activities declined 28% to Rs1.67bn from Rs2.31bn. Rental income increased 6% to Rs173.7m from Rs163.8m.

Fleet expenses, which represent the primary cost component, increased 19% to Rs15.34bn from Rs12.90bn.

Real estate expenses declined 37% to Rs68.6m from Rs109.5m. Gross profit declined 21% to Rs5.41bn from Rs6.84bn in the prior period.

The gross profit margin declined to 26% from 34.4% in H1 FY2025, indicating significant margin compression as fleet expenses grew much faster than revenue.

The net profit margin stood at 28.2% compared to 42.2% in the same period last year, reflecting the company's sharply deteriorated profitability.

Administrative expenses increased 9% to Rs1.10bn from Rs1.01bn.

Other expenses rose 61% to Rs580.1m from Rs359.8m, while other income declined 32% to Rs3.28bn from Rs4.80bn.

Operating profit declined 30% to Rs7.09bn from Rs10.19bn in H1 FY2025, reflecting the pressure from lower gross profit and reduced other income.

Finance costs declined significantly by 56% to Rs109.3m from Rs246.5m, providing substantial relief as borrowing costs moderated.

Profit before taxation stood at Rs6.63bn, representing a 31% decline from Rs9.62bn in the corresponding period last year.

The company recorded a taxation expense of Rs755.5m, down 39% from Rs1.25bn, providing some mitigation to the bottom-line impact.

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