Karachi: Pakistan Oxygen Limited has reported a substantial rise in profit for the half-year ending June 30, 2025, against a backdrop of stabilizing economic conditions in Pakistan. The company’s financial performance highlights a significant increase in net sales and profit margins, buoyed by robust demand in its key segments.
On August 29, 2025, the company’s directors released the interim financial statements along with a review, noting the broader economic context. Pakistan’s GDP growth for the fiscal year 2024-25 stood at 2.7%, showing a slight improvement from the previous year’s 2.5%. Despite this progress, large-scale manufacturing faced challenges, contracting by 1.2%, with sectors such as chemicals, fertilizers, steel, and food and beverages experiencing reduced demand. Inflation rates decreased to 4.5%, prompting the State Bank of Pakistan to lower the policy rate to 11%.
Against this macroeconomic backdrop, Pakistan Oxygen Limited achieved net sales of 6.10 billion rupees, marking an 11% increase over the same period last year. This growth was largely driven by an increase in the Healthcare segment, which saw a 12% rise due to sustained demand for medical gases. Industrial gases, particularly nitrogen, experienced a 23% growth, fueled by heightened demand from the oil and gas and food and beverage sectors. The Welding segment also grew by 8%, supported by demand for key electrode brands, while hydrogen sales surged by 55%.
The company’s gross profit reached 2.30 billion rupees, representing a Big move over the same period last year. This improvement was attributed to increased sales, production efficiencies, and strategic pricing initiatives. Operating expenses were tightly controlled, with a 15% reduction in overheads, excluding workers’ participation and welfare funds. Finance costs fell by 47%, reflecting better working capital management and the lower policy rate. Consequently, the profit before levy and tax rose to 1.50 billion rupees, marking a Very large or significant move compared to the previous year.
According to information available from the Pakistan Stock Exchange (PSX), Pakistan Oxygen Limited’s profit after tax and earnings per share stood at 902 million rupees and 10.35 rupees, respectively, reflecting a Very large or significant move from the previous year’s figures. The company recorded a tax expense of 622 million rupees, including a super tax of 155 million rupees, with an effective tax rate of 41%.
Looking ahead, the company aims to maintain its leadership in the Healthcare and Welding segments, focusing on production efficiencies, cost discipline, and prudent margin management to deliver sustainable value to stakeholders. As Pakistan’s economy is expected to remain stable with lower inflation and policy rates, Pakistan Oxygen Limited plans to capitalize on these favorable conditions to continue its growth trajectory.