Refinery sector profit surges 20-fold to Rs57bn in 1QFY27

November 04, 2026 (MLN): Pakistan’s refinery sector posted a combined net profit of Rs57.06bn in the first quarter ended September 30, 2026 (1QFY27), up nearly 20-fold from Rs2.90bn in the corresponding period last year (1QFY26).

The refinery sector, for this review, comprises Attock Refinery Limited (PSX: ATRL), Cnergyico PK Limited (PSX: CNERGY), National Refinery Limited (PSX: NRL), and Pakistan Refinery Limited (PSX: PRL).

As per the statements of profit or loss compiled by Mettis Global for these four refinery companies, the sector’s net sales/revenue more than doubled, rising 116.5% YoY to Rs567.48bn from Rs262.16bn in 1QFY26.

The cost of sales grew at a slower pace of 85.2% YoY to Rs468.96bn, allowing the sector’s gross profit to expand more than 11-fold to Rs98.52bn, compared to Rs8.92bn in the prior year.

On the expense side, administrative expenses rose 12.2% YoY to Rs1.70bn, while distribution and selling costs nearly doubled (up 98.2%) to Rs969.83m. Other operating expenses jumped more than 12-fold to Rs5.10bn from Rs400.41m in 1QFY26. Other income, meanwhile, rose 38.3% YoY to Rs3.76bn from Rs2.72bn.

The sharp gross margin expansion propelled the sector’s operating profit up more than 10-fold to Rs94.52bn, compared to Rs9.25bn in the preceding year.

Below the operating line, the sector’s finance costs remained virtually flat at Rs3.79bn (up 0.1% YoY). Levies and minimum taxes stood at nil, against Rs401.18m in 1QFY26. Profit before taxation climbed nearly 18-fold to Rs90.73bn from Rs5.05bn.

On the taxation front, the sector’s tax expense increased nearly 16-fold to Rs33.79bn, compared to Rs2.15bn in 1QFY26.

Supported by the massive gross margin recovery and a contribution from ATRL’s non-refinery operations, the four refineries collectively closed 1QFY27 with a combined net profit of Rs57.06bn, against Rs2.90bn in the corresponding period last year.

Combined Statement of Profit or Loss for the quarter ended September 30, 2026 (Rs. ‘000)

Excludes ATRL’s post-tax non-refinery income, shown separately as ATRL discloses it after tax.

ATRL: Net profit surged nearly 13-fold to Rs18.65bn (1QFY26: Rs1.45bn), with EPS at Rs174.89 versus Rs13.62.

CNERGY: Swung to a net profit of Rs12.88bn from a loss of Rs589.47m, with EPS at Rs2.34 versus a loss per share of Rs0.11.

PRL: Net profit rose 13.74x to Rs13.97bn from Rs1.02bn, with EPS at Rs22.17 versus Rs1.61.

NRL: Net profit rose more than 11-fold to Rs11.57bn from Rs1.03bn, with EPS at Rs144.68 versus Rs12.82.

Outlook

ATRL expects the near-term economic environment to remain challenging. The prolonged US-Iran conflict has heightened geopolitical uncertainty, kept global oil prices volatile, raised domestic inflation and interrupted monetary easing. The company will continue to focus on operational efficiency, cost optimization and sustaining revenue amid evolving market conditions.

CNERGY said product prices and spreads remain vulnerable to geopolitical developments. Refineries consented to a revised HSD pricing formula effective August 20, 2026, which caps the spread over crude oil at $41.89 per barrel.

NRL flagged that a downward correction in oil prices, once the regional conflict subsides, carries a risk of inventory devaluation losses on potential operational stock. This could have a significant impact on the next quarter’s results.

The company is also in talks with Saudi Aramco on procuring a complete VLCC through ship-to-ship transfer, to be shared with other Pakistani refineries, while exploring crude supply from non-GCC sources to diversify supply and ensure continuity. NRL’s feasibility study for its refinery upgradation project, being carried out with Wood, is targeted for completion by June 30, 2027.

The government has reduced the deemed duty on HSD from 7.5% to 5% retrospectively from October 22, 2024. NRL disagrees with this and intends to take up the matter at an appropriate forum. It has deposited the first tranche, covering the period up to September 23, 2026.

PRL’s Board has approved a phased approach to the Refinery Expansion and Upgrade Project (REUP). Work has started with the revalidation of the Front End Engineering Design (FEED) study through technical consultants. Parallel efforts continue on securing financial close through the most cost-effective financing options, including interaction with potential strategic investors.

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