Karachi: Hascol Petroleum Limited released its financial results for the first half of 2026, revealing a complex financial landscape marked by significant fluctuations in both sales and profitability. The company reported net sales of Rs. 101,831 million for the period ending June 30, 2026, a 9.6% increase over the Rs. 92,917 million recorded during the same period in 2025. This growth occurred despite a 16.5% decline in sales volumes, amounting to 253,706 metric tons.

According to information available from the Pakistan Stock Exchange (PSX), the company's gross profit fell 44.8% to Rs. 1,241 million, down from Rs. 2,250 million the previous year. This decline was driven by adverse product-price movements in the second quarter, resulting in a narrowed gross margin of 1.22% compared to 2.42% in 2025. Despite these challenges, Hascol managed to increase its cash operating profit to Rs. 1,425 million from Rs. 667 million in 2025, and its EBITDA rose to Rs. 1,702 million, up from Rs. 431 million. These improvements were partly attributed to non-recurring income, including a Rs. 1,463 million reversal of a banking liability and a Rs. 320 million gain from the disposal of the company's tank-lorry fleet.

The company's loss after taxation narrowed by a big move of 35.7% to Rs. 3,145 million, compared to Rs. 4,887 million in 2025. This translated to a loss per share of Rs. 3.15, down from Rs. 4.89 in the previous year. Finance costs remained high at Rs. 3,365 million, although exchange rate stability allowed for a net exchange gain of Rs. 112 million, contrasting sharply with a Rs. 827 million loss the previous year.

The first half of 2026 was particularly volatile for the industry, with Brent crude prices exceeding $111 per barrel following disruptions in the Strait of Hormuz and subsequent corrections after the US-Iran memorandum of understanding in mid-June. Domestically, the State Bank of Pakistan raised the policy rate by 100 basis points to 115% in April, maintaining elevated finance costs, while the Rupee remained stable at approximately Rs. 278 to the US Dollar.

Liquidity constraints persisted due to delays in the settlement of Price Differential Claims (PDC) and existing banking obligations. The government reimbursed Rs. 1,960 million, or 51%, of total PDC claims amounting to Rs. 3,880 million. The company continues to engage with the government to expedite the release of the remaining funds, which are critical for maintaining supply continuity and meeting stock obligations.

As Hascol navigates these challenging market conditions, management has focused on strengthening inventory and treasury controls while maintaining disciplined working-capital management. The company's ability to adapt to volatile market dynamics remains crucial for its ongoing financial stability.