Pakistan’s listed refineries swing to Rs54.8bn profit in FY26
KARACHI : Pakistan’s listed refinery sector recorded a combined profit of Rs54.8 billion in FY2025-26, reversing a loss of Rs10.5 billion in the previous year, as wider petrol and diesel refining margins and higher sales volumes drove a sharp earnings recovery, according to a report by Arif Habib Limited.
The sector’s revenue rose 27% to Rs1.54 trillion from Rs1.22 trillion in FY25. Gross profit increased to Rs107.4 billion from Rs10.4 billion, lifting the gross profit margin to 7.0% from 0.9%. The net profit margin reached 3.6%.Refineries Margins Reach Two-Year High
Higher fuel prices contributed to the revenue increase, with ex-refinery prices of motor spirit, or petrol, rising 17% and high-speed diesel prices increasing 19% year on year. Refinery activity also recovered: total petroleum product output grew 13.4% to 11.2 million tonnes, raising capacity utilisation to 55% from 48%.
Diesel production increased 17.2%, while petrol output rose 12.4%. The production mix shifted further towards diesel, which accounted for 50.3% of output compared with 48.6% a year earlier. Furnace oil’s share fell to 21.1% from 23.1%, while jet fuel’s share increased to 4.9% from 4.4%.
Total refinery sales rose 8.6% to 10.8 million tonnes. Diesel sales grew 13.6% and petrol sales increased 11%, while furnace oil sales declined 7.8% amid weaker demand from the power sector.
The report said wider refining spreads were central to the earnings turnaround. The diesel margin, measured against Arab Light crude, climbed to $29 a barrel from $9.7 a year earlier. The comparable petrol margin rose to $7.4 a barrel from $2.9. Arif Habib Limited attributed the sharp rise in diesel margins partly to supply disruption and procurement difficulties following the onset of the US-Iran conflict in March 2026.
Among individual companies, Attock Refinery reported profit of Rs22.1 billion, up 85% year on year, and declared a dividend of Rs17.50 per share. Pakistan Refinery posted profit of Rs15.8 billion after a Rs4.7 billion loss in FY25, supported by improved margins despite a 1.7% decline in sales volume.
Cnergyico PK returned to profit of Rs10.8 billion from a Rs2.9 billion loss as its petroleum product sales rose 12.3%. National Refinery earned Rs6.2 billion against a Rs14.9 billion loss a year earlier. Its earnings were affected by approximately Rs13.5 billion in policy and accounting charges, the report said.
The annual recovery was concentrated before the final quarter. Sector gross profit fell to Rs8.0 billion in the fourth quarter from Rs72.2 billion in the preceding quarter, while fourth-quarter revenue rose 27% to Rs530.8 billion.
