Pakistan Refinery Limited delivered a remarkable financial recovery during the nine months ending March 31, 2026. The company posted a profit-after-tax of Rs. 12.08 billion. In contrast, it had recorded a net loss of Rs. 4.59 billion in the same period last year.
This sharp turnaround reflects improved margins and stronger operational performance. As a result, the refinery has regained financial stability after a difficult phase.
Record Quarterly Performance Boosts Earnings
During the third quarter of FY26, the company posted a profit-after-tax of Rs. 9.9 billion. At the same time, it achieved its highest-ever gross profit of Rs. 18.9 billion.
Margins expanded to 19.4 percent, which marks a historic high. Therefore, the company benefited significantly from favorable market conditions.
Earnings per share stood at Rs. 19.17. Previously, the company had reported a loss per share of Rs. 7.29. This shift clearly highlights the scale of improvement.
Fuel Price Surge Plays a Key Role
The federal government increased petrol and diesel prices in March. Petrol reached Rs. 321.17 per litre, while diesel climbed to Rs. 335.86 per litre.
Moreover, petrol prices surged further to Rs. 458.40 per litre on March 31. This increase occurred during a period when refineries delayed financial announcements.
As a result, higher prices contributed to improved refining margins. Consequently, profitability saw a major boost.
Refining Margins and Crack Spreads Drive Growth
The company’s growth was largely driven by stronger refining margins. In particular, crack spreads for key products expanded sharply.
Motor spirit cracks averaged $6.2 per barrel. Meanwhile, high-speed diesel cracks reached $57 per barrel. Historically, these averages remained much lower.
Therefore, the widening gap significantly increased earnings. Additionally, operational efficiencies further supported profit growth.
Sales Volumes Show Strong Momentum
Sales volumes also improved during the quarter. Motor spirit sales rose by 49 percent year-on-year to 86,000 tons.
Similarly, high-speed diesel sales increased by 23 percent to 217,000 tons. This growth reflects stronger demand and improved market positioning.
Positive Impact on Pakistan State Oil
Pakistan State Oil holds a 63.6 percent stake in Pakistan Refinery Limited. Therefore, the refinery’s strong performance supports its overall financial position.
The refinery is expected to contribute approximately Rs. 6.3 billion to PSO’s earnings in the third quarter. This contribution strengthens PSO’s consolidated results.
Nine-Month Financial Highlights
Revenue remained stable at Rs. 234.39 billion. Previously, it stood at Rs. 235.96 billion during the same period last year.
However, the cost of sales declined by around 11 percent to Rs. 208.90 billion. This reduction played a key role in improving profitability.
Gross profit surged to Rs. 25.49 billion. Notably, this represents an 8,603 percent increase from Rs. 292.9 million last year.
Selling expenses dropped by 8 percent to Rs. 544.43 million. Similarly, other operating expenses declined by 42 percent to Rs. 1.48 billion.
Administrative expenses rose slightly to Rs. 1.10 billion. Meanwhile, other income decreased by 63 percent to Rs. 894.66 million.
Profitability Strengthens Despite Higher Costs
Operating profit reached Rs. 23.27 billion. Last year, the company had reported an operating loss of Rs. 1.49 billion.
Finance costs increased by 15 percent to Rs. 3.25 billion. Even so, the company maintained strong profitability.
Profit before tax stood at Rs. 20.01 billion. This figure reverses the previous year’s pre-tax loss of Rs. 4.30 billion.
However, the tax charge rose significantly to Rs. 7.93 billion. In comparison, the company had received a tax credit last year.
Conclusion
Pakistan Refinery Limited’s performance highlights a strong recovery driven by market conditions and efficiency gains. Higher fuel prices and improved margins played a crucial role.
At the same time, increased sales volumes added further momentum. Therefore, the company has successfully turned losses into substantial profits within a year.
