WAFI reported earnings per share of PKR 16.56 for CY25 (CY24: 15.41). Furthermore, in 1QCY26, the company reported earnings per share of PKR 10.11 (1QCY25: PKR 4.08). Management noted that Wafi Energy continues to maintain 0% gearing (no debt), which has provided a significant buffer against supply shocks and interest rate fluctuations. Company’s retail footprint has grown from 600+ to 700+ sites in three years. After adding 35 sites in 2025, the company accelerated expansion in 1QCY26 with 18 new sites. The target for the full year 2026 is 75 to 80 new sites, with a long-term goal of exceeding 1,000 sites.
The company secured major lubricant partnerships with Toyota Motors and MG Motors. The Non-Fuel Retail (NFR) segment expanded, with Shell Select stores now at 80+ sites, helping diversify revenue streams. Management noted a 10-15% decline in industry-wide fuel demand due to high prices and inflationary pressures. Management clarified that 1QCY26 results included realized inventory gains from March price hikes, but also accounted for Net Realizable Value (NRV) adjustments for price drops occurring up to the board meeting date in late April.
The company remains open to acquisitions of other Oil Marketing Companies but emphasized a disciplined approach, focusing on strategic alignment and “credible growth” rather than just volume. Management estimated that 15-25% of the market is impacted by smuggled products and is working with the government on digitizing the supply chain to curb this. Going forward, a new storage tank in KP is expected to be operational shortly, fulfilling licensing requirements and supporting regional expansion. Wafi is exploring the establishment of a Middle East subsidiary for trading to vertically integrate its supply chain and enhance procurement efficiency.
Important Disclosures
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