Pakistan Petroleum Limited (PSX: PPL) has delivered a stronger financial performance, while rewarding shareholders with its highest annual dividend.
The company reported a seven percent year-on-year increase in annual profit for fiscal year 2026. Its profit reached Rs. 98.53 billion, supported by higher oil prices and increased hydrocarbon production.
The reversal of super tax also contributed to the improvement after a judgment by the Federal Constitutional Court of Pakistan.
PPL Announces Record Dividend
PPL announced an interim cash dividend of Rs. 6 per share for the fourth quarter of FY26. As a result, the company’s total dividend payout reached a record Rs. 12 per share for the year.
The company also recorded a sharp rise in quarterly earnings. Its fourth-quarter profit increased 93 percent year-on-year and 80 percent quarter-on-quarter.
The quarterly profit reached Rs. 37.38 billion, translating into earnings per share of Rs. 13.74.
Sales Rise on Higher Prices and Production
PPL’s sales climbed 64 percent year-on-year to Rs. 84.9 billion during the fourth quarter. Higher oil prices and increased production mainly supported the growth.
For the full financial year, the company reported sales of Rs. 264 billion. The results highlight the impact of stronger hydrocarbon output across several key fields.
Among PPL’s major gas fields, Kandhkot production increased 18.6 percent year-on-year. Meanwhile, Nashpa’s gas output rose 80 percent.
However, production at Mari declined by 4.3 percent during the period.
Oil Production Shows Mixed Performance
PPL also reported stronger oil production from several operations. Nashpa’s oil output increased 32.1 percent year-on-year.
Additionally, production from the TAL Block rose 28 percent to 12,687 barrels per day. The increase partly offset lower crude production caused by supply disruptions.
Despite stronger sales and production, PPL’s other income declined during the quarter. Other income fell 32 percent year-on-year to Rs. 3.2 billion.
The decline resulted from lower interest rates and the absence of a Rs. 1.6 billion one-off insurance claim. The claim had been recognised during the previous quarter.
Recovery Ratio and Receivables
PPL’s recovery ratio stood at 86 percent during the fourth quarter. Consequently, trade receivables increased to Rs. 623.4 billion.
The figure compared with Rs. 611.6 billion during the third quarter. The recovery ratio had stood at 88 percent during the same period a year earlier.
The figures indicate continued pressure on collections despite the company’s improved earnings. Meanwhile, PPL continued investing in major development projects.
Investment in Reko Diq Increases
PPL invested an additional Rs. 7.5 billion in the Reko Diq project during June 2026. The company had invested Rs. 2.6 billion in the project during June 2025.
Its total investment in Reko Diq reached Rs. 28.6 billion during FY26. This marked a significant increase from Rs. 12.7 billion invested during FY25.
PPL’s FY26 results therefore combine stronger profitability with record shareholder returns and increased investment. The company’s performance was supported by higher prices, improved production and the reversal of super tax.
For the latest updates, visit and follow The Truth International website (www.thetruthinternational.com) and subscribe to the YouTube Channel.
