Pakistan Refinery Limited (PSX: PRL) has recorded a remarkable financial turnaround for the half-year ended December 31, 2025, reporting a net profit of Rs2.14 billion, compared to a net loss of Rs2.01 billion in the same period last year. The company’s earnings per share rose to Rs3.39 from a loss per share of Rs3.20, signaling a strong return to profitability, supported by improved refining margins and effective operational management.
Revenue from contracts with customers declined 18.9 percent year-on-year to Rs137 billion, down from Rs168.9 billion in the corresponding period, reflecting lower sales volumes and pricing pressures in the petroleum products market. Despite this revenue contraction, disciplined cost management and operational efficiency led to a substantial improvement in gross profit. Cost of sales fell 21.8 percent to Rs130.4 billion from Rs166.8 billion, resulting in a gross profit of Rs6.61 billion, up dramatically from Rs2.12 billion in the previous year. This improvement pushed gross profit margins to 4.8 percent from 1.3 percent, indicating enhanced profitability and operational efficiency.
The company also demonstrated effective expense control, with selling expenses down 7.2 percent to Rs364.8 million and administrative expenses reduced 2.5 percent to Rs699.2 million. Other operating expenses dropped sharply by 87.7 percent to Rs275.5 million, as prior-year figures included significant one-time charges. Other income declined 53.2 percent to Rs772.4 million, partially offsetting operational gains but not impeding the overall recovery.
Operating profit surged to Rs6.04 billion from Rs427.9 million in the same period last year, reflecting a remarkable rebound in operational performance. Finance costs increased 18.2 percent to Rs2.23 billion, while the company recorded a minor share of loss from associate at Rs4.3 million. Profit before taxation reached Rs3.80 billion, reversing a loss of Rs1.46 billion in the previous year. The final and minimum tax decreased 28.6 percent to Rs685.5 million, while overall taxation amounted to Rs981.3 million compared to a tax credit of Rs406.1 million previously. Net profit margins improved to 1.6 percent from a negative 1.2 percent, demonstrating the company’s return to profitability.
Pakistan Refinery Limited operates one of the country’s key oil refining facilities and plays a crucial role in meeting domestic petroleum demand. The turnaround was driven by higher refining margins, efficient cost control, and the absence of the substantial one-time operating expenses that affected the prior period. Despite a decline in revenue, the company achieved better margins through operational efficiency and favorable market dynamics.
The results highlight PRL’s resilience and capability to generate sustainable profits in challenging market conditions, reinforcing its position as a leading player in Pakistan’s petroleum sector. By demonstrating improved financial and operational performance, PRL strengthens stakeholder confidence and showcases the effectiveness of its management strategies in navigating a competitive energy market.
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