Pakistan Refinery Limited (PRL) has posted a profit-after-tax (PAT) of Rs. 12.08 billion, a big recovery for the nine months ended March 31, 2026, compared with a net loss of Rs. 4.59 billion recorded in the same period last year.
In Q3 FY26, PAT came in at Rs. 9.9 billion. The company reported its highest-ever gross profit of Rs. 18.9 billion, with margins expanding to 19.4 percent, both historic highs, according to Arif Habib Limited.
The federal government in March increased the petrol rate to Rs. 321.17 per litre and diesel to Rs. 335.86 per litre. Petrol prices surged to Rs. 458.40 per litre on March 31, during thee time when refineries delayed announcing their financial results.
The strong turnaround translated into earnings per share (EPS) of Rs. 19.17 compared to last year’s loss per share of Rs. 7.29. Profit growth was largely margin-led, supported by stronger refining margins and operational efficiencies.
AHL said the strong performance was primarily driven by a sharp widening in refinery crack spreads, particularly for high-speed diesel (HSD).
During the quarter, motor spirit (MS) and HSD cracks averaged $6.2 per barrel and $57 per barrel, respectively, significantly above historical averages of around $5 per barrel for MS and around $12 per barrel for HSD, providing a substantial boost to earnings.
On the volumetric side, MS sales rose 49 percent YoY to 86,000 tons, while HSD sales increased 23 percent YoY to 217,000 tons in 3QFY26.
This result also bodes well for Pakistan State Oil (PSO) on a consolidated basis, given its 63.6 percent stake in PRL. AHL estimated PRL to contribute approximately Rs. 6.3 billion (Rs. 13.5/share) to PSO’s bottom line in 3QFY26.
PRL’s revenue remained largely stable at Rs. 234.39 billion compared to Rs. 235.96 billion in 9MFY25.
The cost of sales fell by around 11 percent to Rs. 208.90 billion compared with Rs. 235.67 billion previously.
Gross profit surged to Rs. 25.49 billion, an 8,603 percent jump from only Rs. 292.9 million recorded in 9MFY25.
Selling expenses declined by 8 percent to Rs. 544.43 million.
Other operating expenses dropped significantly by 42 percent to Rs. 1.48 billion.
Administrative expenses increased slightly to Rs. 1.10 billion, whereas other income decreased by 63 percent to Rs. 894.66 million.
The sharp recovery in gross margins pushed operating profit to Rs. 23.27 billion from last year’s operating loss of Rs. 1.49 billion.
Finance costs rose by 15 percent to Rs. 3.25 billion.
Profit before taxes reached Rs. 20.01 billion, completely reversing the pre-tax loss of Rs. 4.30 billion recorded a year earlier.
The company also faced a higher tax charge of Rs. 7.93 billion, compared with a tax credit of Rs. 1.096 billion in the previous period.
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