WAFI 1HCY26 profit rises 19%

August 27, 2026 (MLN): Wafi Energy Pakistan Limited (PSX: WAFI) reported a 19% increase in its net profit for the half-year ended June 30, 2026 (1HCY26), recording Rs1.52bn compared to Rs1.28bn in the corresponding period last year.

Reflecting the half-year profitability growth, the company's basic and diluted earnings per share (EPS) for the six-month period improved to Rs7.12, up from Rs5.97 in 1HCY25.

The primary driver behind the performance was strong top-line revenue expansion combined with gross margin growth.

Net sales for the half-year surged by 37% year-on-year to reach Rs303.04bn, up from Rs221.70bn in 1HCY25.

Although the cost of products sold expanded by 37% to Rs285.26bn, strong sales volume growth enabled gross profit to expand 28% to Rs17.78bn compared to Rs13.94bn in the prior year.

On the operational front, overheads expanded to support market scale and commercial activities.

Distribution and marketing expenses rose 15% to Rs6.11bn, administrative expenses grew 17% to Rs5.37bn, and other expenses surged 203% to Rs3.72bn.

Despite a 4% increase in "other income" (Rs1.04bn), rising operating expenses led to a slight 5% dip in operating profit, which settled at Rs3.63bn.

Below the operating line, WAFI benefited from stable borrowing costs and associate income support.

Finance costs fell 3% to Rs1.13bn (down from Rs1.17bn in 1HCY25), while the share of profit from associates stood at Rs965.82m.

Coupled with the complete absence of final taxes and minimum tax differentials (which totaled Rs380.93m in 1HCY25), profit before income tax rose 2% to Rs3.46bn.

The company absorbed an 8% lighter net income tax charge of Rs1.94bn for the six-month period (down from Rs2.10bn in 1HCY25), aided by a deferred tax credit of Rs870.34m.

Supported by 37% top-line growth, gross margin expansion, and tax relief, Wafi Energy Pakistan Limited securely closed the half-year with its net profit reaching Rs1.52bn.

Through a period of disruption in global energy markets and sustained volatility, the company maintained reliable supply to customers.

Wafi Energy continued to expand its network in this period, adding 38 new Shell retail sites, 18 new Shell Select stores, 2 EV Shell Recharge facilities and upgrading eight existing retail sites.

The lubricants business grew across its consumer and industrial segments during the period, supported by product launches and sustained investment in customer and mechanic engagement. Together, this extends access to Shell fuels, lubricants and convenience services for customers across the country. 

Recently, the company inaugurated a new 7.4-million-liter motor gasoline storage tank at its Tarru Jabba terminal in Nowshera, KPK.

The facility adds storage capacity and improves the ability to hold and move products closer to demand, supporting supply resilience across the region. With this investment, Wafi Energy also plans to expand its Shell retail network across northern Pakistan. 

Commenting on the performance, Zubair Shaikh, Chief Executive Officer, said, “This has been a demanding half for the industry, with disruption to global supply routes and continued volatility in costs. Our performance reflects disciplined investment and execution and focus on supply security. Our aim has been simple: keep supply moving, provide customers with reliable fuels and lubricants, and keep investing in long term value creation for shareholders and the country.”

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