Pakistan refineries swing to PKR 54.8 billion profit in FY26
Stronger refining margins and higher production help listed refineries recover from PKR 10.5 billion loss
Pakistan’s listed refineries posted a combined PKR 54.8 billion net profit in fiscal 2026, reversing a PKR 10.5 billion loss a year earlier as stronger petrol and diesel refining margins, higher production and rising petroleum prices boosted earnings, according to Arif Habib Ltd.
Sector revenue increased 27% to PKR 1.54 trillion from PKR 1.22 trillion in FY25, while gross profit surged to PKR 107.4 billion from PKR 10.4 billion. The gross profit margin improved to 7% from 0.9%.
Higher fuel prices also supported the increase in revenue, with ex-refinery petrol prices rising 17% year on year and high-speed diesel prices increasing 19%.
Production and sales improve
Combined refinery production increased 13.4% to 11.2 million tonnes from 9.9 million tonnes, lifting capacity utilization to 55% from 48%.
Diesel production rose 17.2%, while petrol output increased 12.4%. Diesel’s share of total production increased to 50.3% from 48.6%, while furnace oil’s share fell to 21.1% from 23.1%.
Total refinery sales increased 8.6% to 10.8 million tonnes, with diesel sales rising 13.6% and petrol sales up 11%. Furnace oil sales, however, declined 7.8% due to weaker demand from the power sector.
Refining margins drive turnaround
The recovery was largely supported by a sharp improvement in refining margins. The diesel refining margin against Arab Light crude rose to USD 29 per barrel from USD 9.7 in FY25, while the petrol margin increased to USD 7.4 from USD 2.9.
Arif Habib Ltd said supply disruptions and procurement difficulties following the onset of the U.S.-Iran conflict in March 2026 contributed to the increase in diesel margins.
Among individual companies, Attock Refinery reported a PKR 22.1 billion profit, up 85% year on year, while Pakistan Refinery posted PKR 15.8 billion compared with a PKR 4.7 billion loss previously.
Cnergyico PK returned to profit with PKR 10.8 billion, against a PKR 2.9 billion loss, while National Refinery earned PKR 6.2 billion compared with a PKR 14.9 billion loss in FY25.
Despite the full-year recovery, earnings weakened sharply in the final quarter. Combined gross profit fell to PKR 8 billion in the fourth quarter from PKR 72.2 billion in the preceding quarter, highlighting the sector’s sensitivity to international refining margins, crude supply conditions and domestic fuel demand.
