Karachi: Pakistan State Oil Company Ltd (PSO) showcased a remarkable performance in its latest financial results, reporting a 150% increase in profit after taxation for the nine-month period ending March 31, 2026. The profit after taxation rose to 38,118 million rupees from 15,268 million rupees during the same period a year earlier. This significant boost in profitability was driven by various factors, as detailed in the company's recent corporate briefing session.

The company's net sales saw a decline of 4% to 2.24 trillion rupees, compared to 2.34 trillion rupees in the previous period. Meanwhile, the cost of goods sold decreased by 7%, contributing to a gross profit of 133,620 million rupees, marking an 82% increase. The positive margin variance was cited as a key reason for the substantial gross profit improvement.

PSO's operating profit nearly doubled, rising by 97% to 97,182 million rupees, while the finance cost decreased by 36%, attributed to a reduction in average borrowings and effective interest rates. Despite a 21% decline in other income, largely due to decreased dividend income and recovery of line fill cost, the overall financial results remained strong.

According to information available from the Pakistan Stock Exchange (PSX), the company's earnings per share surged to 81.19 rupees from 32.52 rupees. The taxation component also increased significantly by 135%, in line with the profitability rise, amounting to 54,394 million rupees.

On the assets front, PSO reported a total asset base of 1.14 trillion rupees as of March 31, 2026, up from 1.02 trillion rupees on June 30, 2025. Notable increases were observed in stock-in-trade, which went up by 59%, and trade debts, which experienced a minor move with a 4% increase. Property, plant, and equipment, along with right-of-use assets, saw a 21% increase due to additions in operating assets and leased sites.

Liabilities and equity also reflected changes, with total equity climbing 13% to 283,609 million rupees, driven by increased profits. Borrowings decreased by 19% as a result of efficient working capital management, while trade and other payables rose by 34%, attributed to a rise in international oil prices.

The nine-month period's financial performance underscores PSO's strategic management in navigating fluctuating oil prices, as evidenced by the recorded maximum price of $146.05 per barrel in March 2026, a very large move from previous periods. The financial results highlight the company's resilience and adaptability in the face of significant variances in market conditions.