PRL swings to profit in 1HFY26

February 2, 2026 (MLN): Pakistan Refinery Limited (PSX: PRL) reported a net profit of Rs2.14bn for the half year ended December 31, 2025, swings from a net loss of Rs2.01bn recorded in the same period last year.

The company's earnings per share turned positive at Rs3.39 compared to a loss per share of Rs3.20 in the corresponding period of the previous year.

The refinery's revenue from contracts with customers declined 18.9% YoY to Rs137bn from Rs168.9bn, which reflects lower sales volumes or pricing pressures in the petroleum products market.

Cost of sales decreased 21.8% to Rs130.4bn from Rs166.8bn, resulting in a gross profit of Rs6.61bn, up dramatically from Rs2.12bn in the prior period.

The gross profit margin improved significantly to 4.8% from 1.3% in SPLY, indicating substantially enhanced refining margins and operational efficiency.

The net profit margin stood at 1.6% compared to a negative 1.2% in the same period last year, which shows the company's return to profitability.

Selling expenses declined 7.2% to Rs364.8m from Rs393.1m, while administrative expenses decreased 2.5% to Rs699.2m from Rs716.9m, demonstrating effective cost management.

Other operating expenses dropped sharply by 87.7% to Rs275.5m from Rs2.24bn, with the prior period having included significant one-time charges that did not recur in the current period.

Other income declined 53.2% to Rs772.4m from Rs1.65bn, partially offsetting the operational improvements.

Operating profit surged to Rs6.04bn from Rs427.9m in SPLY, marking a remarkable turnaround in operational performance.

Finance costs increased 18.2% to Rs2.23bn from Rs1.89bn, reflecting higher borrowing levels or interest rates. The company's share of loss from associate stood at Rs4.3m compared to an income of Rs1.9m in the prior period.

Profit before taxation reached Rs3.80bn, swinging from a loss of Rs1.46bn in the corresponding period last year.

The company recorded final and minimum tax of Rs685.5m, down 28.6% from Rs959.8m, while taxation showed a charge of Rs981.3m compared to a tax credit of Rs406.1m in SPLY.

Pakistan Refinery Limited operates one of the country's key oil refining facilities, playing a crucial role in meeting domestic demand for petroleum products.

The company's impressive turnaround to profitability was driven by significantly improved refining margins, effective cost control, and the absence of substantial other operating expenses that had weighed heavily on the previous year's results.

Despite lower revenue, the company managed to achieve much better margins through improved operational efficiency and favorable market dynamics.

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