Karachi: Hascol Petroleum Limited has announced its financial results for the six-month period ending June 30, 2025, revealing a significant loss of Rs. 4,887 million. This result marks a slight increase from the Rs. 4,790 million loss reported during the same period in the previous year. The company attributes this financial outcome primarily to adverse exchange rate fluctuations, which resulted in a foreign exchange loss of approximately Rs. 827 million.
On August 29, 2025, Hascol Petroleum disclosed its net sales, amounting to Rs. 92,917 million. Despite facing ongoing liquidity challenges due to outstanding banking obligations, delayed payments, and limited working capital, the company achieved a 56% volumetric growth in the first half of the year compared to the same period last year.
According to information available from the Pakistan Stock Exchange (PSX), the company’s gross profit showed a big move, while its operating performance reflected a very large or significant move. The basic and diluted loss per share also showed a very large or significant move.
To address financial pressures, Hascol Petroleum is finalizing the restructuring of its banking liabilities to enhance liquidity and operational performance. The company is actively working to streamline operations by shutting down loss-making ventures and utilizing assets for profitable, cash-generating businesses in line with its strategic focus.
The oil marketing sector in Pakistan continues to face immense pressure and uncertainty due to unresolved issues, including pricing mechanisms, margin revisions, taxation complexities, and regulatory processes. Hascol’s management is engaging with the government to resolve these issues to ensure the sustainability of companies operating in this sector.
The company is also contending with Pakistan’s broader economic challenges, including debt, inflation, and unemployment, alongside rising security threats, climate disasters, political unrest, and geopolitical pressures. The petroleum sector faces additional strains from circular debt, delayed IMF support, mismanagement in state-owned enterprises, outdated infrastructure, policy uncertainty, and increasing levies.
Geopolitical tensions, notably the Pakistan-India conflict and Israel-Iran unrest, have contributed to rising oil prices due to fears of supply disruptions, increasing freight and insurance costs. These developments have driven up demand for U.S. dollars, exerting pressure on the Pakistani rupee and the broader economy.
Amid these challenges, Hascol Petroleum has expressed gratitude to its employees, customers, financial institutions, suppliers, and stakeholders for their unwavering support. The company also extends appreciation to the Government of Pakistan, its ministries, and regulatory bodies for their continued assistance and guidance.
The company is currently undergoing further arrangements to restructure its borrowings, and while it has made settlement agreements with banks, the financial situation remains precarious. The auditor’s report highlights a material uncertainty regarding Hascol’s ability to continue as a going concern, noting that the company’s liabilities exceed its assets and it has defaulted on major financing arrangements.