Pakistan State Oil Company Limited (PSO) reported consolidated earnings per share of PKR 35.03 for FY25, compared to earnings per share of PKR 39.04 in FY24. Furthermore, in 3QFY26, the company reported earnings per share of PKR 52.59, compared to earnings per share of PKR 6.74 in the same period last year (SPLY). PSO’s market share currently stands at around 42–44%, which management considers sustainable.
While competitors continue to offer discounts, PSO aims to maintain a balance between healthy profitability and market share retention. PSO is leading digitization efforts and installing the necessary equipment to meet the government’s targets by CY26. Management remains in continuous discussion with the government regarding potential margin increases however, no immediate changes have taken place so far.
As part of its commitment to sustainable mobility and clean energy, PSO is actively expanding its infrastructure through the rollout of EV charging stations. Management has remained prudent in recognizing tax related liabilities. Additionally, the high profitability recorded in March 2026 directly increased the mandated WWF and WPPF charges. PSO has a principal receivable of PKR 68bn from GENCO-III Guddu, of which PKR 10bn is expected to be recovered by year end. Receivables from SNGPL stand at PKR 286bn.
The government is working on a settlement plan for the overall circular debt, which is expected to materialize over the next two to three years. Management confirmed that all local borrowings are linked to KIBOR. The specific PKR 100bn facility is backed by a government bank guarantee and was arranged to finance the increase in inventory costs. The Qatar LNG contract remains intact, with Qatar continuing to honor the agreed rates despite elevated global LNG prices. Usable inventory currently stands at roughly 20 days. However, including dead stock, which refers to fuel held in pipelines and tanks that cannot be used, total inventory stands at around 30–32 days.
Price differential claims currently stand at PKR 24bn, while sales tax refunds amount to PKR 75bn. Regarding PSO’s potential participation in the privatization of DISCOs, management clarified that no formal interest has been expressed so far.
Important Disclosures
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