Pakistan State Oil (PSO) reported a decline in profit after tax for FY2026 despite higher gross earnings, as rising costs, weaker LNG operations and growing government-related receivables continued to weigh on the company’s financial performance.
According to PSO’s FY2026 Annual Report, gross profit increased 3.3% to Rs99.9 billion, compared with Rs96.7 billion a year earlier. However, overall profit after tax fell to around Rs15 billion, down nearly 28% from approximately Rs21 billion in FY2025.
PSO’s core petroleum business recorded stronger sales, with net revenue rising 11.7% to Rs2.41 trillion. Gross profit from the segment increased 19.7% to Rs80.8 billion, but its profit after tax still declined 13.1% to Rs20.7 billion due to higher operating costs and taxes.
The company’s LNG business remained loss-making, posting a Rs7.9 billion loss. LNG sales declined 35.8% as supply disruptions around the Strait of Hormuz affected cargo availability. Profit after tax from other segments also fell sharply, while total other income declined 20.8% to Rs17.5 billion.
PSO’s receivables continued to highlight the circular debt challenge. Trade receivables stood at Rs414.8 billion, compared with Rs437.5 billion last year, mainly due to a reduction in SNGPL’s outstanding dues to Rs276.1 billion.
However, other receivables increased 20.8% to Rs173.9 billion, while sales tax refundable rose 12% to Rs83.1 billion. SNGPL, GENCO and PIA collectively owed PSO Rs357.5 billion, equivalent to around 86% of its trade receivables.
Meanwhile, short-term borrowings increased 7.9% to Rs384.3 billion. Local-currency borrowing rose sharply from Rs36.5 billion to Rs144.2 billion. Despite this, PSO’s finance costs declined 24%, largely reflecting lower interest rates and reduced receivables.
The company also continued expanding its retail and storage infrastructure. PSO added 92 retail outlets during the year, taking its total network to 3,688 outlets, while storage capacity increased to 1.23 million tonnes.
For FY2027, PSO has identified the White Oil Pipeline, solarisation of sites and electric vehicle charging infrastructure among its key priorities. However, the annual report does not provide specific investment amounts or timelines for these projects.
