Pakistan Oxygen Limited (PSX: PAEL) has reported a significant improvement in profitability for the six months ended June 30, 2026, with higher sales and stronger operating performance translating into a substantial increase in earnings.
According to the company’s unaudited interim financial statements, Pakistan Oxygen recorded net sales of Rs7.39 billion during the first half of 2026, compared with Rs6.07 billion in the corresponding period of 2025. This represents an increase of roughly 22%, reflecting stronger business activity during the period.
The improvement was even more pronounced at the profit level. Gross profit increased to Rs3.25 billion, from Rs2.29 billion a year earlier, while operating profit rose to approximately Rs2.71 billion, compared with Rs1.82 billion in the first half of 2025.
After finance costs and taxation, the company reported profit after tax of Rs1.68 billion, up sharply from Rs901.6 million in the same period last year. The result represents growth of around 87% year-on-year. Earnings per share also strengthened considerably, rising to Rs19.31 from Rs10.35.
Second-quarter performance remains strong
Pakistan Oxygen’s performance during the April-June quarter also showed solid momentum. Net sales reached approximately Rs3.77 billion, compared with Rs3.12 billion in the same quarter of 2025. Gross profit increased to Rs1.67 billion from Rs1.30 billion, while operating profit stood at around Rs1.50 billion.
Quarterly profit after tax climbed to nearly Rs992 million, compared with Rs510 million a year earlier. Quarterly earnings per share consequently increased to Rs11.38 from Rs5.85.
Balance sheet remains sizeable
The company’s financial position also remained robust. As of June 30, 2026, total assets stood at approximately Rs21.30 billion, compared with Rs20.60 billion at the end of December 2025. Equity increased to around Rs13.41 billion, from Rs11.73 billion at the end of 2025, supported by the period’s earnings.
The company’s cash position also improved during the period. Cash and cash equivalents at the end of June 2026 stood at approximately Rs718.5 million, compared with a negative balance of Rs552.0 million reported at June 30, 2025.
Cash generated from operating activities amounted to approximately Rs1.35 billion during the first six months of 2026. The company also invested Rs460.9 million in property, plant and equipment, indicating continued investment in its operating assets.
No dividend or bonus shares announced
Despite the strong earnings performance, the company’s board recommended no cash dividend, bonus shares or right shares for the period. The company said its financial results for the half year and quarter ended June 30, 2026 were approved at a board meeting held in Karachi on August 24, 2026.
Overall, Pakistan Oxygen’s first-half results point to a year of stronger revenue generation, improved profitability and a healthier cash position. With profit growth substantially outpacing sales growth, the results suggest that the company benefited not only from higher revenues but also from improved operating performance during the period.
