Pakistan’s listed refinery sector staged a major financial recovery in FY2026, moving from a loss to a substantial profit. The sector posted Rs. 54.8 billion in profit after recording a Rs. 10.5 billion loss in FY2025.
Stronger petrol and diesel refining margins supported the turnaround, while higher production and sales further lifted earnings. The sector’s revenue rose 26.9 percent to Rs. 1.54 trillion from Rs. 1.22 trillion.
Refinery Sector Revenue and Profit Surge
The sector’s gross profit jumped to Rs. 107.4 billion from Rs. 10.4 billion a year earlier. Consequently, the gross margin improved to 7 percent from just 0.9 percent in FY2025.
Meanwhile, the sector recorded a net profit margin of 3.6 percent during FY2026.
Higher fuel prices and stronger refinery activity contributed significantly to the revenue increase. Ex-refinery prices of petrol and high-speed diesel rose 17 percent and 19 percent, respectively.
At the same time, total petroleum product production increased 13.4 percent to 11.2 million tons. Therefore, refinery utilisation improved to 55 percent from 48 percent in FY2025.
Diesel and Petrol Production Increase
Diesel production climbed 17.2 percent during FY2026, while petrol production increased 12.4 percent.
Diesel accounted for 50.3 percent of total refinery output, compared with 48.6 percent a year earlier. In contrast, furnace oil’s share declined to 21.1 percent from 23.1 percent.
Meanwhile, jet petroleum’s contribution increased to 4.9 percent from 4.4 percent.
Total refinery sales rose 8.6 percent to 10.8 million tons. Diesel sales increased 13.6 percent, while petrol sales grew 11 percent.
However, furnace oil sales declined 7.8 percent as demand from the power sector weakened.
Refining Margins Give Earnings a Major Boost
Refining margins provided another major lift to the sector’s profitability during FY2026.
The diesel margin against Arab Light crude increased sharply to $29 per barrel from $9.7 per barrel. Similarly, the petrol margin rose to $7.4 per barrel from $2.9 per barrel.
The stronger diesel margin was partly linked to supply disruptions and tougher international cargo procurement. These challenges followed heightened geopolitical tensions after the US-Iran conflict began in March 2026.
How Major Refineries Performed
At the company level, Attock Refinery recorded an 85 percent increase in profit to Rs. 22.1 billion. The company also declared a dividend of Rs. 17.50 per share.
Pakistan Refinery returned to profit during FY2026, earning Rs. 15.8 billion compared with a Rs. 4.7 billion loss previously. However, its sales volume declined 1.7 percent.
Cnergyico PK Limited also returned to profit, posting Rs. 10.8 billion against a Rs. 2.9 billion loss a year earlier. Its petroleum product sales increased 12.3 percent.
Meanwhile, National Refinery reported Rs. 6.2 billion in profit against a Rs. 14.9 billion loss in FY2025. However, its earnings were affected by around Rs. 13.5 billion in policy and accounting charges.
Fourth Quarter Shows Sharp Slowdown
Despite the strong full-year recovery, the sector’s performance weakened considerably during the fourth quarter.
Sector gross profit fell to Rs. 8.0 billion from Rs. 72.2 billion in the preceding quarter. At the same time, revenue increased 27 percent to Rs. 530.8 billion.
The FY2026 earnings figures show the sector’s profit after tax reaching around Rs. 55 billion. This marked a sharp turnaround from the loss recorded during FY2025.
Overall, stronger refining margins, increased production and higher fuel sales drove the sector’s return to profitability. However, the fourth-quarter slowdown shows that earnings momentum weakened toward the end of FY2026.
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