Karachi: Pakistan Petroleum Limited (PPL) has released its annual report for the fiscal year ending June 30, 2026, revealing noteworthy financial growth in several key areas. The report, dated November 10, 2026, highlights a significant increase in both net sales and profit after tax, underscored by strategic investments and favorable market conditions.
The company's net sales surged to PKR 264 billion, marking a 9% increase from the previous year's PKR 243 billion. This growth was largely attributed to higher sales volumes, which rose to 552 MMscfde from 539 MMscfde last year. Additionally, the company benefited from a favorable price variance due to a rise in crude oil prices, an outcome of the geopolitical tensions stemming from the US-Iran conflict.
PPL's profit after tax also experienced a 7% increase, reaching PKR 99 billion compared to PKR 92 billion last year. This was influenced by the increased sales revenue, coupled with a reduction in dry well costs and the reversal of the provision for Super Tax. However, these gains were partially offset by a rise in operating expenses and a decline in interest income.
The total assets of the company reached PKR 1,025 billion, an 11% increase from PKR 927 billion last year. This growth was driven by investments in the Reko Diq project and Pakistan International Oil Limited (PIOL), alongside a moderate increase in trade debts. The company reported a collection rate of 91% for the year.
Total liabilities also rose by 11%, amounting to PKR 245 billion from PKR 221 billion last year. The increase was primarily due to the accrual of the lease extension bonus for the Sui field, the windfall levy on the Tal Block, and a slight rise in estimated decommissioning obligations.
According to information available from the Pakistan Stock Exchange (PSX), the company's financial performance reflects the impact of strategic maneuvering in a volatile global oil market.
In terms of sales versus collections, the company reported gross sales of PKR 313 billion with collections totaling PKR 284 billion, resulting in a collection ratio of 91%. This represents a decline attributed to the lagging impact of crude oil price increases in the last quarter. The collection ratio would have been 95% if normalized for this impact.
As of June 30, 2026, PPL's receivables totaled PKR 623 billion, with the highest percentage owed by Sui Southern Gas Company Limited (SSGCL) at 53%, followed by Sui Northern Gas Pipelines Limited (SNGPL) at 43%.
The financial results reflect PPL’s strategic efforts to navigate the complexities of the global oil market while capitalizing on investment opportunities to bolster its asset base and improve profitability.