Pakistan Refinery Limited (PRL) has reported a strong financial turnaround, posting a profit-after-tax of Rs. 12.08 billion for the nine months ended March 31, 2026, compared to a loss of Rs. 4.59 billion in the same period last year.
In the third quarter of FY26 alone, the company recorded a profit-after-tax of Rs. 9.9 billion. According to Arif Habib Limited, PRL also achieved its highest-ever gross profit of Rs. 18.9 billion during the quarter, while gross margins improved to 19.4 percent, both marking historic highs.
Earnings per share stood at Rs. 19.17, compared to a loss per share of Rs. 7.29 in the corresponding period last year. The turnaround was mainly driven by stronger refining margins and improved operational efficiency, with profitability largely led by margin expansion rather than volume growth.
AHL noted that the performance was supported by a sharp increase in refinery crack spreads, especially for high-speed diesel (HSD). During the quarter, motor spirit (MS) and HSD cracks averaged USD 6.2 per barrel and USD 57 per barrel, respectively, well above their historical averages of around USD 5 per barrel and USD 12 per barrel. This significant widening provided a strong boost to earnings.
On the volumetric front, MS sales increased by 49 percent year-on-year to 86,000 tons, while HSD sales rose by 23 percent year-on-year to 217,000 tons in 3QFY26.
The strong results also have positive implications for Pakistan State Oil (PSO), which holds a 63.6 percent stake in PRL. AHL estimates that PRL will contribute approximately Rs. 6.3 billion, or Rs. 13.5 per share, to PSO’s earnings in 3QFY26.
For the nine-month period, PRL’s revenue remained broadly stable at Rs. 234.39 billion compared to Rs. 235.96 billion in 9MFY25. However, the cost of sales declined by around 11 percent to Rs. 208.90 billion from Rs. 235.67 billion in the same period last year.
This led to a dramatic improvement in gross profit, which surged to Rs. 25.49 billion compared to just Rs. 292.9 million in 9MFY25. Selling expenses fell by 8 percent to Rs. 544.43 million, while other operating expenses dropped sharply by 42 percent to Rs. 1.48 billion. Administrative expenses edged up slightly to Rs. 1.10 billion, while other income declined by 63 percent to Rs. 894.66 million.
As a result, operating profit rose sharply to Rs. 23.27 billion, compared to an operating loss of Rs. 1.49 billion in the previous year. Finance costs increased by 15 percent to Rs. 3.25 billion.
Profit before tax stood at Rs. 20.01 billion, reversing a loss before tax of Rs. 4.30 billion recorded in the same period last year. However, the company’s tax charge increased significantly to Rs. 7.93 billion, compared to a tax credit of Rs. 1.096 billion in the prior year period.
