Pakistan Oil & Gas sector profits surge 25% to Rs461bn in FY26

September 18, 2026 (MLN): Pakistan's oil and gas exploration and production sector posted robust bottom-line growth in FY26, as revenue expansion and a broad-based easing in tax outlays offset rising exploration and operating cost pressures across the industry.

The KSE-100 listed oil and gas exploration sector recorded a 25% YoY growth in combined net profits, which clocked in at Rs460.72bn as against Rs368.22bn in FY25.

As per the results compiled by Mettis Global of the consolidated income statements of the four KSE-100 listed oil and gas exploration companies, the sector saw a rise of 10.2% YoY in its net sales/revenue, worth Rs971.41bn as compared to Rs881.81bn in SPLY.

To note, the compiled sector result includes MARI, OGDC, POL, and PPL.

On the cost front, royalty payments rose 17.5% YoY to Rs149.28bn, while operating and administrative expenses climbed 19.0% YoY to Rs288.89bn. Despite these higher upstream costs, gross profit improved by 5.0% YoY to Rs550.71bn.

Exploration and prospecting expenditure eased marginally by 0.9% YoY to Rs62.79bn, while other charges rose 4.9% YoY to Rs35.63bn.

Below the operating line, combined other income and finance income fell sharply by 35.0% YoY to Rs85.72bn as compared to Rs131.95bn in SPLY, while finance costs declined 14.3% YoY to Rs14.20bn.

The sector's share of profit from associates surged 89.3% YoY to Rs18.27bn from Rs9.65bn, lending additional support to the bottom line.

On account of the sharp fall in other/finance income, profit before taxation edged down 3.1% YoY to Rs521.76bn as compared to Rs538.55bn in the corresponding period.

However, the sector's taxation charge fell sharply by 67.9% YoY to Rs61.04bn as against Rs190.33bn in SPLY, cushioning the bottom line significantly.

Supported chiefly by the broad-based tax relief across the sector, the combined net profit of the four listed oil and gas exploration companies climbed 25% YoY to Rs460.72bn in FY26.

Consolidated Statement of Profit or Loss (Combined) for the Year Ended June 30, 2026 (Rs '000)

 Source: Company accounts, Mettis Global 

Outlook

Mari Energies Limited (PSX: MARI) said it remains committed to its Vision 2030 roadmap, maintaining focus on its core upstream oil and gas business while supporting Pakistan's energy security and food supply chain resilience.

The company said its strategy remains anchored on sustainable reserve replacement, production optimization, operational excellence, and disciplined capital allocation toward diversification initiatives, including progressive expansion into minerals, technology, environmental solutions, and digital capabilities such as AI and machine learning.

Going forward, the company's key short-to-medium term priorities include continued development of discoveries at Ghazij, Shewa, Spinwam, Soho, Pateji, and Shams, along with execution of surface and subsurface activities under the HRL Pressure Enhancement Facilities project at Mari Field.

Mari Energies also plans to advance gas supply arrangements to the fertilizer sector from its Ghazij field, in line with government allocation frameworks aimed at optimizing monetization of indigenous resources, while pursuing long-term offshore exploration in the Indus and Makran basins and continuing to support the PIOL consortium's development of Offshore Block-5 in Abu Dhabi.

On the diversification front, the company intends to progress digital infrastructure projects under MariTechnologies and SKY47, including Tier III/IV data centers in Islamabad and Karachi, and continue mining-led diversification through MariMinerals across licensed blocks in Chagai, Balochistan.

The company also plans to deploy advanced analytics and AI/ML tools organization-wide to strengthen risk management and operational efficiency.

Oil & Gas Exploration Companies vs. KSE100 Performance

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