Karachi: Pakistan State Oil Company Limited (PSO) has reported a decline in its annual profit for the fiscal year ending June 30, 2026, as revealed in its unconsolidated statement of profit or loss released on September 25, 2026. The company's profit for the year stood at 18.07 billion rupees, a decrease from the 20.91 billion rupees reported in the previous year.

The net sales for PSO reached 3.05 trillion rupees, reflecting a very large or significant move compared to the 3.149 trillion rupees in the previous fiscal year. The cost of products sold amounted to 2.95 trillion rupees, down from 3.053 trillion rupees in 2025.

Operating costs, including distribution, marketing, and administrative expenses, saw an increase, contributing to the decline in profit. Distribution and marketing expenses rose to 23.01 billion rupees from 21.08 billion rupees, while administrative expenses increased to 8.40 billion rupees from 7.43 billion rupees. Other expenses also saw a rise to 6.08 billion rupees from 4.13 billion rupees.

According to information available from the Pakistan Stock Exchange (PSX), PSO's gross profit experienced a big move, rising to 99.94 billion rupees from 96.71 billion rupees the previous year. However, finance costs decreased to 25.66 billion rupees from 33.72 billion rupees, providing some relief to the company's financials.

The company's taxation for the year increased significantly to 31.79 billion rupees from 20.12 billion rupees, impacting the overall profit. Despite these challenges, PSO's earnings per share were reported at 32.10 rupees.

In terms of assets, PSO's total assets were recorded at 992.10 billion rupees, showing a moderate move compared to 1.010 trillion rupees in 2025. The company's equity and liabilities were also noted at 992.10 billion rupees, reflecting a very large or significant move from the previous year's 1.019 trillion rupees.

The cash flow from operating activities saw a considerable decline, with a net cash use of 74.43 billion rupees compared to 149.05 billion rupees generated in the prior year. Cash flows from investing and financing activities also reported negative figures, contributing to an overall decrease in cash and cash equivalents by the end of the year. PSO's cash and cash equivalents at the end of the fiscal year were reported at 13.26 billion rupees, a significant drop from the 100.02 billion rupees at the beginning of the year.

The designated market category for PSO remains unchanged, as the company continues to navigate through a challenging economic environment.