POL profit soars 47%, declares Rs72.5 final dividend

August 27, 2026 (MLN): Pakistan Oilfields Limited (PSX: POL) recorded a 47% increase in its net profit for the year ended June 30, 2026, with profit for the year climbing to Rs33.84bn from Rs22.99bn in the corresponding period last year.

Showing this exceptional bottom-line growth, the company's earnings per share (EPS) expanded to Rs119.08 from Rs80.89 in FY25.

In a major reward for shareholders, the Board of Directors has declared a final cash dividend of Rs72.50 per share (725%) for the year ended June 30, 2026. This is in addition to interim dividend(s) already paid at Rs27.50 per share (275%).

The top-line showed steady growth, with gross sales rising 10% year-on-year to Rs70.20bn from Rs64.07bn.

After accounting for sales tax and excise duty, net sales posted a 10% increase to Rs64.25bn from Rs58.55bn in the prior year.

Operating costs rose 23% to Rs14.83bn, and royalty and wellhead charges increased 10% to Rs7.12bn. Despite these higher upstream costs, gross profit expanded by 6% to Rs42.30bn from Rs40.05bn.

On the expenditure side, the standout development was a dramatic 58% reduction in exploration costs to Rs4.71bn from Rs11.18bn a saving of over Rs6.47bn that provided a massive boost to the pre-tax line.

Administration expenses were also trimmed by 11% to Rs379.02m. Net finance costs nearly halved, declining 47% to Rs2.54bn from Rs4.78bn.

Other charges rose 20% to Rs2.58bn, and net other income declined 33% to Rs9.57bn from Rs14.30bn.

A significant swing came from the share of profit from associates, which turned to a profit of Rs2.75bn from a loss of Rs2.97bn last year.

Additionally, an impairment on investment in associates of Rs353.51m was recorded in the current year, reversing a reversal of impairment of Rs2.14bn in the prior period.

These combined factors pushed profit before income tax and final taxes up 26% to Rs44.06bn from Rs34.98bn. Final taxes levies declined sharply by 71% to Rs354.91m from Rs1.21bn, bringing profit before income tax up 29% to Rs43.71bn from Rs33.78bn.

Provision for taxation declined 9% to Rs9.86bn from Rs10.79bn a proportionally far smaller figure relative to the strong pre-tax profit growth amplifying the bottom-line result and delivering the 47% surge in profit for the year.

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