PPL 9MFY26 profit declines 15%

April 29, 2026 (MLN):  Pakistan Petroleum Limited (PSX: PPL) reported a 15% decline in its consolidated net profit for the nine months ended March 31, 2026, recording Rs60.79bn compared to Rs71.85bn in the corresponding period last year.

Reflecting this bottom-line contraction, the company's basic and diluted earnings per share (EPS) dropped to Rs22.34 from Rs26.41 in 9MFY25.

The company also declared dividend at Rs2 per share.

The profit decline was primarily driven by a drop in top-line sales and a steep reduction in secondary income.

PPL’s revenue from contracts with customers posted a 6% year-on-year decrease, falling to Rs180.71bn from Rs192.56bn.

While the company saw an 8% drop in royalties and other levies (down to Rs27.72bn), operating expenses climbed by 14% to Rs47.07bn.

This unfavorable cost dynamic, combined with lower revenue, caused the gross profit to contract by 13%, settling at Rs105.92bn compared to Rs121.26bn in the prior year.

On the operational front, PPL found massive relief in its exploration costs. Exploration expenses plummeted by a staggering 66%, dropping to just Rs4.38bn from a heavy Rs12.88bn burden in the same period last year.

However, administrative expenses increased by 20% to Rs5.97bn.

Below the gross profit line, the company experienced a mix of financial dynamics.

Finance costs dropped by 22% to Rs1.49bn, and the share of loss from associates narrowed by 56% to Rs650.18m.

Other charges also declined by 8% to Rs8.89bn. Despite these substantial savings and drastically lower exploration costs, a sharp 48% plunge in "other income" which fell to Rs10.13bn from a robust Rs19.50bn last year dragged overall profitability down.

Weighed down by the shrinking gross margins and halving of other income, the profit before taxation registered a 14% decline, settling at Rs94.67bn.

A proportionally lower taxation expense of Rs33.87bn (down 11% year-on-year) helped cushion the final blow, leaving the net profit for the nine-month period at a resilient Rs60.79bn.

Copyright Mettis Link News