Karachi: Burshane LPG (Pakistan) Limited has reported substantial growth in its sales and financial performance for the year ending June 30, 2026, as detailed in its Directors' Report released on September 29, 2026. The company's sales volume reached 12,919 metric tons (MT), marking an increase of 56.34%, attributed to timely financial support from a sister concern which facilitated the purchase of imported LPG. Net sales surged by 71.32% to Rs. 2,841.47 million, driven by increased sales volume and higher LPG prices from March to June.
The company's gross margins also saw a rise to Rs. 298.244 million, representing 10.50% of the sales value, with an increase of Rs. 236.985 million from the previous year. Administrative expenses rose slightly to Rs. 81.060 million, while distribution and marketing expenses decreased by Rs. 3.283 million to Rs. 44.217 million. Notably, the financial cost decreased by Rs. 2.659 million to Rs. 54.263 million, benefiting from the full repayment of Demand Finance by June 30, 2026.
According to information available from the Pakistan Stock Exchange (PSX), Burshane LPG's profit before revenue tax increased by Rs. 152.942 million, reaching Rs. 187.027 million. The profit per share for the year stood at Rs. 7.99, compared to Rs. 1.31 in the previous year, reflecting a very large or significant move in profitability.
The industry review highlights a growing LPG market in Pakistan, driven by increased demand amid stagnant local production. Imports, primarily from Gulf countries, have exceeded 1.5 million tons annually. The Oil and Gas Regulatory Authority (OGRA) continues to regulate LPG prices, creating challenges for companies importing LPG at higher prices than locally produced LPG. The current geopolitical tensions in the Gulf have further impacted LPG import prices and supply, posing challenges for local marketing companies.
Material changes affecting the company include a revised restructuring proposal with the National Bank of Pakistan, initially accepted on January 6, 2022. Despite initial compliance, financial constraints led to defaults on payment schedules. The company remains engaged with NBP for restructuring negotiations, having fully settled Demand Finance I and continuing to reduce its working capital loan.
The company faced legal challenges, including a tax evasion allegation of approximately Rs. 1.7 billion filed by the Directorate of Investigation and Intelligence (Inland Revenue) on August 31, 2020. Protective bail was obtained, and the case is pending hearing. Additionally, tax demands for the years 2018 and 2019 were contested, with the High Court ruling in the company's favor, nullifying pending tax demands.
Looking ahead, the LPG industry in Pakistan is expected to grow, driven by a shift towards alternative energy sources and declining natural gas reserves. The market is projected to exceed 3.5 million metric tons annually within three years. Despite pricing volatility and import reliance, government initiatives to revise LPG distribution policies and incentivize local infrastructure could stabilize the market.
Burshane LPG remains committed to health, safety, security, and environmental (HSSE) standards, achieving a period without any Lost Time Injury (LTI). The company emphasizes HSSE as a critical business activity, with management demonstrating leadership and commitment to maintaining a high level of performance in these areas.