April 30, 2026 (MLN): Hascol Petroleum Limited (PSX: HASCOL) reported a spectacular financial turnaround for the first quarter ended March 31, 2026, posting a net profit of Rs448.97m. This marks a massive recovery from the heavy net loss of Rs3.10bn recorded in the corresponding period last year.
Reflecting this dramatic bottom-line recovery, the company's basic and diluted earnings per share (EPS) turned positive, reaching Rs0.45 compared to a loss per share of Rs3.11 in Q1 2025.
The core driver behind this impressive return to profitability was a significant expansion in gross margins driven by lower direct costs.
While HASCOL’s net revenue saw a modest 2% year-on-year increase, inching up to Rs48.52bn from Rs47.50bn, the cost of products sold actually declined by 3% to Rs45.40bn.
Because the company effectively lowered its direct costs while maintaining top-line stability, its gross profit skyrocketed by an exceptional 4.8x, reaching Rs3.12bn compared to just Rs649.53m in the prior year.
On the operational front, HASCOL executed rigorous cost-cutting measures. Distribution and marketing expenses were slashed by 15% to Rs962.07m, while administrative expenses dropped by 20% to Rs277.89m.
Furthermore, the company received a massive boost from "other income," which surged by 7.6x to Rs327.32m. Propelled by the soaring gross profit, reduced overheads, and surging secondary income, the company posted a strong operating profit of Rs2.21bn, a complete turnaround from the Rs808.01m operating loss suffered in the same period last year.
Below the operating line, the company also found relief from currency fluctuations. HASCOL booked a net exchange gain of Rs59.74m, a sharp positive reversal from the severe Rs350.68m exchange loss recorded in Q1 2025. Finance costs, while still a heavy burden, dipped slightly by 4% to Rs1.68bn.
Supported by the operational turnaround and favorable exchange dynamics, the profit before income tax from continuing operations stood at Rs444.28m. Adding a minor Rs4.69m net profit from discontinuing operations, Hascol Petroleum successfully closed the three-month period with its total net profit at Rs448.97m, definitively stepping out of the red.
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STATEMENT OF PROFIT OR LOSS FOR THE THREE MONTH ENDED MARCH 31, 2026 (Rs.000) |
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|
Description |
2026 |
2025 |
change % |
|
Sales - net |
48,387,964 |
47,514,022 |
2% |
|
Sales tax |
(2,072) |
(68,494) |
-97% |
|
Net sales |
48,385,892 |
47,445,527 |
2% |
|
Other revenue |
135,885 |
57,417 |
137% |
|
Net revenue |
48,521,777 |
47,502,944 |
2% |
|
Cost of products sold |
(45,399,623) |
(46,853,411) |
-3% |
|
Gross profit |
3,122,154 |
649,533 |
381% |
|
Distribution and marketing |
(962,074) |
(1,135,513) |
-15% |
|
Administrative |
(277,894) |
(349,448) |
-20% |
|
(Operating expenses subtotal) |
(1,239,968) |
(1,484,961) |
-16% |
|
Impairment losses on financial assets |
639 |
(14,759) |
|
|
Other expenses |
(4,968) |
(450) |
1004% |
|
Other income |
327,316 |
42,627 |
668% |
|
Operating (loss)/profit |
2,205,173 |
(808,010) |
|
|
Finance cost |
(1,680,324) |
(1,753,755) |
-4% |
|
Exchange (loss)/gain - net |
59,739 |
(350,677) |
|
|
Share of profit on associate |
2,597 |
2,645 |
-2% |
|
Profit /(loss) before income tax and levy from continuing ops |
587,185 |
(2,909,797) |
|
|
Minimum tax differential |
(142,908) |
(186,751) |
-23% |
|
Profit /(loss) before income tax |
444,277 |
(3,096,548) |
|
|
Profit /(loss) after tax from continuing operations |
444,277 |
(3,096,548) |
|
|
Profit /(loss) before income tax and levy from discontinuing ops |
5,865 |
(6,818) |
|
|
Taxation (Discontinuing) |
(1,173) |
- |
|
|
Profit /(loss) after tax from discontinuing operations |
4,692 |
(6,818) |
|
|
Profit /(loss) after income tax |
448,969 |
(3,103,366) |
|
|
Earning/ (loss) per share - basic and diluted (Rupees) |
0.45 |
(3.11) |
|