February 17, 2026 (MLN):Pakistan State Oil Company Limited (PSX: PSO) reported a net profit of Rs12.12bn for the half year ended December 31, 2025, which represents an 8% increase from the Rs11.18bn profit recorded in the same period last year.

The company's earnings per share rose to Rs25.82 from Rs23.81 in the corresponding period of the previous year.

The country's largest oil marketing company's gross sales declined 8% YoY to Rs1.61 trillion from Rs1.74 trillion, reflecting lower petroleum product prices or reduced volumes.

Sales tax decreased 16% to Rs80.95bn from Rs95.81bn, while inland freight equalization margin increased 25% to Rs27.79bn from Rs22.15bn.

 Net sales declined 8% to Rs1.50 trillion from Rs1.63 trillion in the prior period.

Cost of products sold decreased 8% to Rs1.45 trillion from Rs1.57 trillion, resulting in a gross profit of Rs47.10bn, down 7% from Rs50.77bn in H1 FY2025.

The gross profit margin remained stable at 3.1% compared to 3.1% in the same period last year, reflecting consistent margins in the oil marketing business.

The net profit margin improved marginally to 0.8% from 0.7% in the prior period.

Other income declined 16% to Rs8.63bn from Rs10.32bn.

Distribution and marketing expenses rose 14% to Rs10.73bn from Rs9.40bn, which reflected higher logistics and distribution costs.

Administrative expenses increased 20% to Rs3.72bn from Rs3.10bn, while other expenses decreased 32% to Rs2.11bn from Rs3.12bn.

Finance costs declined significantly by 41% to Rs11.40bn from Rs19.20bn, providing substantial relief as borrowing costs moderated considerably in the lower interest rate environment.

Profit before taxation stood at Rs23.06bn, up 11% from Rs20.77bn in H1 FY2025.

Current taxation increased 26% to Rs11.34bn from Rs9.01bn, while prior year taxation rose significantly to Rs134.8m from Rs30.5m.

The company recorded a deferred tax credit of Rs540.3m compared to a deferred tax charge of Rs543.3m in the prior period, providing some relief to the bottom line.

The company's 8% profit growth was primarily driven by a substantial 41% reduction in finance costs, which more than offset the impact of lower gross profit and reduced other income.