Karachi, February 13, 2026 – Pakistan Petroleum Limited (PPL) on Friday announced a sharp 26 percent decline in its after-tax profit for the quarter ended December 31, 2025, primarily due to a significant rise in operating expenses and higher tax payments.
According to the consolidated financial results submitted to the Pakistan Stock Exchange (PSX), PPL posted a net profit of Rs20.15 billion for the second quarter of FY26, compared with Rs27.26 billion recorded in the same period last year. The decline in profitability translated into lower earnings per share (EPS), which fell to Rs7.40 from Rs10.02 in the corresponding quarter of the previous year.
The company’s Board of Directors, in a meeting held on Friday, approved both the unconsolidated and consolidated financial statements for the half year ended December 31, 2025. Alongside the financial results, the board also approved an interim cash dividend of Rs2.00 per share (20 percent) on ordinary shares and Rs1.00 per share (10 percent) on convertible preference shares for the quarter.
This latest dividend is in addition to the interim cash dividend of Rs2.00 per share (20 percent) on both ordinary and convertible preference shares already paid earlier during the year. The entitlement date has been set as February 26, 2026, and the dividend will be paid to shareholders whose names appear in the company’s register of members at the close of business on that date.
A detailed review of the financials shows that operating expenses (OPEX) surged by 32 percent to Rs16.54 billion during the quarter, up from Rs12.50 billion in the same period last year. The sharp rise in costs significantly weighed on the company’s bottom line.
In addition, PPL’s income tax expense increased by 22 percent to Rs11.91 billion for the quarter, compared with Rs9.75 billion paid in the corresponding period of the previous year. The combined impact of higher operating costs and increased tax burden contributed substantially to the decline in profitability.
For the first half of FY26, PPL reported a 20 percent drop in after-tax profit, which stood at Rs40 billion, down from Rs50 billion recorded in the same period last year. The weaker half-year performance reflects continued pressure from rising costs, fiscal challenges, and a demanding operating environment for the energy sector.
Market analysts noted that while PPL remains one of Pakistan’s leading exploration and production companies, sustained increases in operational expenditures and taxes could continue to challenge earnings growth in the near term. However, steady dividend payouts underscore the company’s commitment to delivering shareholder value despite a tougher financial landscape.