Pakistan Refinery Limited (PSX: PRL) has announced a significant financial turnaround for the half-year ended December 31, 2025 (1HFY26). The company reported a net profit of Rs 2.14 billion, swinging from a net loss of Rs 2.01 billion in the same period last year.
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Earnings per share (EPS) turned positive to Rs 3.39, compared to a loss per share of Rs 3.20 in 1HFY25.
Key Financial Drivers:
Despite an 18.9% year-on-year decline in revenue to Rs 137 billion, the company’s profitability was restored through:
- Dramatically Improved Refining Margins: The cost of sales decreased at a faster rate than revenue (down 21.8%), leading to a 211% surge in gross profit to Rs 6.61 billion. The gross profit margin expanded to 4.8% from 1.3%.
- Effective Cost Control: The company managed selling and administrative expenses effectively, and crucially, other operating expenses plummeted by 87.7%. This was due to the absence of significant one-time charges that had weighed on the prior-year results.
- Strong Operational Performance: These factors combined to drive operating profit up over 13-fold to Rs 6.04 billion.
Condensed Statement of Profit or Loss (1H FY 2026 vs. 1H FY 2025)
| Description | 1H FY26 | 1H FY25 | Change |
|---|---|---|---|
| Revenue | Rs 137.0 bn | Rs 168.9 bn | -18.9% |
| Gross Profit | Rs 6.61 bn | Rs 2.12 bn | +211.2% |
| Operating Profit | Rs 6.04 bn | Rs 0.43 bn | +1,311.7% |
| Profit/(Loss) Before Tax | Rs 3.80 bn | (Rs 1.46 bn) | Turnaround |
| Profit/(Loss) After Tax | Rs 2.14 bn | (Rs 2.01 bn) | Turnaround |
| Earnings/(Loss) Per Share (PKR) | 3.39 | (3.20) | Turnaround |
The results demonstrate a remarkable recovery for PRL, driven by enhanced operational efficiency, favorable refining margins, and disciplined cost management, leading the company back to profitability.
