POL 9MFY26 posts stellar 25% profit growth

April 30, 2026 (MLN): Pakistan Oilfields Limited (PSX: POL) reported a robust 25% increase in its consolidated net profit for the nine months ended March 31, 2026, reaching Rs21.17bn compared to Rs16.98bn in the corresponding period last year.

Reflecting this strong bottom-line expansion, the company's basic and diluted earnings per share (EPS) attributable to owners jumped to Rs74.50 from Rs59.75 in 9MFY25.

The profit growth was achieved despite a slight dip in the company's top line. POL’s net sales posted a 5% year-on-year decrease, falling to Rs43.79bn from Rs45.93bn. Operating costs and royalty charges also saw minor declines of 3% each.

As the drop in revenue slightly outpaced these cost reductions, the company’s gross profit contracted by 5%, settling at Rs28.04bn compared to Rs29.65bn in the prior year.

The absolute catalyst for POL's profit surge was a massive 53% drop in exploration costs.

These expenses plummeted to Rs4.57bn from a heavy Rs9.77bn burden in 9MFY25. This enormous saving of over Rs5bn easily offset the gross margin compression and instantly bolstered the company's core profitability.

Further down the income statement, POL experienced a mix of financial dynamics. The company benefited from a 39% reduction in net finance costs, which dropped to Rs1.81bn, and a spectacular 3.8x surge in its share of profits from associates, which leapt to Rs2.11bn from just Rs553.07m last year.

However, these gains were partially weighed down by a 40% decline in net other income, which fell to Rs6.58bn from a robust Rs10.97bn in the prior year.

Boosted primarily by the slashed exploration expenses and surging associate profits, the profit before income tax rose by 10% to Rs28.11bn.

The company then found further relief in an 18% lower taxation provision of Rs6.94bn. This combination of operational savings and reduced tax burdens allowed Pakistan Oilfields Limited to securely close the nine-month period with an impressive 25% leap in its final net profit, settling at Rs21.17bn.

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