Hascol Petroleum Limited has reported stronger sales and an improved bottom-line position for the six months ended June 30, 2026, although rising costs and finance expenses continued to weigh on profitability.
According to the company’s unaudited interim financial results, Hascol Petroleum recorded net sales of approximately Rs101.83 billion during the first half of 2026, compared with Rs92.92 billion in the same period last year. This represents an increase of nearly 10 percent and highlights higher business activity during the period.
After adding other revenue, total net revenue reached approximately Rs102.03 billion, up from Rs93.15 billion a year earlier. However, the improvement in revenue did not translate into higher gross profit. Gross profit declined to around Rs1.24 billion, compared with Rs2.25 billion in the corresponding period of 2025. The figures indicate that the increase in sales was accompanied by significant pressure on the cost of products sold.
Operating performance shows improvement
Despite weaker gross margins, the company managed to report an operating profit of Rs463.86 million for the six-month period, compared with an operating loss of approximately Rs244.96 million in the first half of 2025.
Operating expenses also declined during the period. Distribution and marketing expenses stood at about Rs1.97 billion, compared with Rs2.23 billion last year, while administrative expenses fell to approximately Rs536.66 million from Rs607.25 million.
Another positive factor was the company’s other income, which increased substantially to around Rs1.82 billion, compared with Rs369 million in the same period of 2025. These factors helped the company move into positive operating territory despite the decline in gross profit.
Finance costs remain a major challenge
The financial results also show that finance costs remain a significant burden for Hascol Petroleum. Finance costs were approximately Rs3.36 billion during the six months, only slightly below the Rs3.46 billion recorded in the same period last year.
As a result, the company reported a loss before tax of Rs3.14 billion, an improvement from the Rs4.89 billion loss recorded during the first half of 2025. After tax, the company posted a loss of approximately Rs3.14 billion, compared with a loss of Rs4.89 billion a year earlier.
The loss per share also improved, moving to Rs3.15 per share, compared with a loss per share of Rs4.89 in the corresponding period of 2025.
Cash generation improves
Hascol’s cash flow statement provides another encouraging element in the results. Net cash generated from operating activities increased to approximately Rs3.79 billion, compared with Rs2.94 billion during the same period last year.
The company generated positive cash from investing activities of around Rs211.89 million. At the same time, financing activities used approximately Rs1.21 billion, including payments against long-term finance. Overall, the company reported a net increase in cash and cash equivalents of around Rs2.79 billion during the period.
A mixed but improving picture
Hascol Petroleum’s first-half 2026 results present a mixed picture. The company succeeded in increasing sales, reducing its overall loss, improving operating performance and generating stronger operating cash flow. However, the sharp decline in gross profit and continued pressure from finance costs remain important challenges.
The results suggest that improving margins and managing financing costs will be key priorities for the company going forward. If Hascol can convert its stronger sales and operating performance into healthier margins while controlling financial expenses, its overall profitability could improve further.
For investors and market observers, the first half of 2026 therefore offers signs of operational progress, but the company’s continuing losses underline the need for sustained improvement in cost management and financial performance.
