Hascol Petroleum Limited (PSX: HASCOL) reduced its consolidated net loss by 36 percent during the half year ended June 30, 2026, as higher revenue, lower operating expenses, stronger other income and a reversal in exchange losses helped offset pressure from rising product costs and a substantial finance cost. The company reported a loss of Rs3.10 billion for the period, compared with Rs4.87 billion in the corresponding half of the previous year. The improvement also brought the company’s basic and diluted loss per share down to Rs3.11 from Rs4.88, while loss per share from continuing operations narrowed to Rs3.12 from Rs4.86.
Hascol’s revenue performance showed moderate improvement during the period, with net sales increasing by 9.57 percent year-on-year to Rs101.85 billion from Rs92.95 billion. After accounting for sales tax of Rs24.09 million, which declined by 27.21 percent from Rs33.09 million, net sales stood at Rs101.83 billion, up 9.59 percent from Rs92.92 billion a year earlier. Other revenue, however, decreased by 5.43 percent to Rs218.14 million from Rs230.66 million. Despite the decline in other revenue, the company’s overall net revenue increased by 9.55 percent to Rs102.04 billion from Rs93.15 billion, reflecting higher sales during the reporting period.
The improvement at the revenue level did not translate into stronger gross profitability because the cost of products sold increased at a faster pace. Hascol’s product costs rose by 10.87 percent to Rs100.78 billion from Rs90.90 billion in the corresponding period. As a result, gross profit fell sharply by 43.81 percent to Rs1.26 billion from Rs2.25 billion. The figures indicate that the company faced significant margin pressure during the period, with the increase in product costs exceeding the growth in revenue. Despite the weaker gross margin, Hascol managed to improve its operating position through reductions in several operating expenses and a substantial increase in other income.
Distribution and marketing expenses declined by 11.63 percent to Rs1.97 billion from Rs2.23 billion, while administrative expenses decreased by 6.31 percent to Rs568.95 million from Rs607.25 million. The combined operating expense subtotal consequently fell by 10.49 percent to Rs2.54 billion from Rs2.84 billion. Hascol also recorded an impairment gain of Rs18.33 million on financial assets during the period, compared with an impairment charge of Rs17.10 million in the previous year. These reductions provided some relief against the contraction in gross profit, although other expenses increased substantially to Rs102.65 million from only Rs8.76 million.
A major positive factor in Hascol’s financial performance was the sharp increase in other income. Other income rose nearly fivefold, or 398 percent, to Rs1.81 billion from Rs363.52 million in the same period last year. This increase played an important role in moving the company from an operating loss to an operating profit. Hascol recorded an operating profit of Rs449.77 million for the half year, compared with an operating loss of Rs250.43 million in the corresponding period. The improvement in the operating result came despite the significant decline in gross profit and helped reduce the impact of continued financial costs.
Below the operating level, Hascol’s finance cost declined modestly by 2.87 percent to Rs3.36 billion from Rs3.46 billion. Although the reduction was relatively limited, the company benefited considerably from a turnaround in exchange-related results. Hascol recorded a net exchange gain of Rs112.44 million during the period, compared with a net exchange loss of Rs827.19 million in the previous year. This represented a significant positive movement in the company’s financial results. At the same time, the share of profit from an associate increased by 11.39 percent to Rs38.93 million from Rs34.95 million.
As a result of these movements, the combined below-operating subtotal narrowed by 24.50 percent to Rs3.21 billion from Rs4.26 billion. The improvement helped reduce Hascol’s loss before income tax and levy from continuing operations by 38.68 percent to Rs2.76 billion from Rs4.51 billion in the previous year. The company recorded no final income tax charge during the current period, while the minimum tax differential increased slightly by 1.54 percent to Rs356.37 million from Rs350.97 million. After accounting for the minimum tax differential, loss from continuing operations narrowed by 35.77 percent to Rs3.12 billion from Rs4.86 billion.
Hascol also reported a significant improvement in the results of its discontinued operations. The company recorded a profit before income tax and levy of Rs23.71 million from discontinued operations, compared with a loss of Rs8.37 million in the corresponding period last year. After taxation of Rs6.88 million, profit from discontinued operations stood at Rs16.83 million, reversing a loss of Rs16.44 million recorded in the previous year. Although the contribution from discontinued operations remained relatively small compared with the company’s overall financial position, the turnaround provided an additional improvement to the consolidated result.
Taking continuing and discontinued operations together, Hascol’s total loss for the half year declined by 36.34 percent to Rs3.10 billion from Rs4.87 billion a year earlier. The company’s basic and diluted loss per share consequently improved to Rs3.11 from Rs4.88. The loss per share from continuing operations declined to Rs3.12 from Rs4.86, while discontinued operations contributed earnings per share of Rs0.02 compared with a loss per share of Rs0.02 in the corresponding period.
The financial results show that Hascol achieved a reduction in its overall loss despite facing pressure on gross margins. Revenue increased by almost 10 percent, but product costs grew at a faster rate, resulting in a substantial decline in gross profit. Lower distribution, marketing and administrative expenses helped contain operating costs, while the sharp increase in other income and the reversal from an exchange loss to an exchange gain provided significant support to the bottom line.
Hascol’s half-year results therefore reflect a mixed operating picture, with stronger revenue and improved operating and below-operating results offsetting continued pressure from high product costs and finance expenses. The company’s ability to narrow its loss by more than one-third was supported particularly by the substantial increase in other income, lower operating expenses and improved exchange-related results, while the decline in gross profit remained a key challenge during the period.
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