Pakistan State Oil’s consolidated profit rises to Rs31.58 billion as lower product costs and finance expenses offset weaker sales and higher taxation.
KARACHI: Pakistan State Oil (PSO) has posted a 122 per cent increase in consolidated profit after tax for fiscal year 2025-26 (FY26), despite a more than doubling of its income tax liability.
According to the company’s consolidated financial results submitted to the Pakistan Stock Exchange (PSX) on Friday, PSO recorded a profit after tax of Rs31.58 billion in FY26, compared with Rs14.24 billion in the previous financial year.
The results were considered by PSO’s Board of Management at its meeting on September 25, 2026, which had been scheduled to approve the company’s annual financial statements and consider any entitlement.
PSO profit rises despite higher tax
PSO’s income tax liability increased substantially during FY26, reaching Rs40.22 billion, compared with Rs19.03 billion in FY25.
Despite the higher tax burden, the company’s earnings improved significantly, with earnings per share (EPS) increasing to Rs54.29 from Rs35.03 a year earlier.
The improvement reflects stronger gross profitability and lower finance costs during the year.
Final dividend of Rs10 per share approved
PSO’s Board of Management approved a final cash dividend of Rs10 per share for the year ended June 30, 2026.
The dividend forms part of the company’s shareholder distribution following the improvement in annual profitability.
Gross profit increases despite lower sales
PSO’s net sales declined to Rs3.12 trillion in FY26 from Rs3.32 trillion in the preceding financial year.
However, the cost of products sold fell at a faster pace, declining to Rs3.08 trillion from Rs3.22 trillion.
As a result, the company’s gross profit increased substantially to Rs133.25 billion, compared with Rs97.15 billion in FY25.
The figures indicate a significant improvement in gross profitability despite the reduction in overall sales revenue.
Other income declines
PSO’s other income decreased during the year, falling to Rs18.31 billion from Rs24.37 billion in FY25.
At the same time, total operating costs increased to Rs42.58 billion, compared with Rs37.55 billion a year earlier.
The rise in operating expenditure placed some pressure on the company’s earnings, although the improvement in gross profit helped offset the increase.
Finance costs fall sharply
Finance costs provided further support to PSO’s bottom-line performance.
The company’s finance costs declined to Rs29.71 billion in FY26 from Rs37.41 billion in the previous financial year.
The reduction lowered the financial burden on the company and contributed to the increase in profit before and after taxation.
Stronger earnings despite challenging revenue environment
PSO’s FY26 results show that the company delivered substantially higher annual profitability despite lower net sales and a significant increase in its tax liability.
The combination of stronger gross profit, reduced finance costs and improved operating performance helped lift consolidated profit after tax to Rs31.58 billion.
PSO remains one of Pakistan’s major oil marketing companies, with its principal activities covering the procurement, storage and marketing of petroleum and related products.