KARACHI: Pakistan Refinery Limited (PRL) has made a strong turnaround in its financial performance, reporting a profit after tax of Rs12.08 billion for the nine months ended March 31, 2026, compared with a loss of Rs4.59 billion recorded during the same period last year.

According to the company’s financial results, PRL generated earnings per share (EPS) of Rs19.17 during the nine-month period, reversing a loss per share of Rs7.29 reported in the corresponding period of the previous year.

The improvement was supported by a significant recovery in operating performance. PRL posted a gross profit of Rs25.49 billion during the nine months, compared with a nominal gross profit of Rs292.94 million in the same period of 2025.

The company’s revenue from contracts with customers stood at Rs234.40 billion, slightly lower than Rs235.96 billion a year earlier. However, a substantial reduction in the cost of sales helped the refinery achieve a major improvement in gross profitability.

PRL reported an operating profit of Rs23.27 billion, compared with an operating loss of Rs1.49 billion in the nine months ended March 31, 2025. Finance costs increased to approximately Rs3.25 billion, while taxation amounted to Rs7.93 billion during the period.

Quarterly performance also improves

PRL’s performance during the third quarter remained strong. For the quarter ended March 31, 2026, the company recorded a profit after tax of Rs9.94 billion, compared with a loss of Rs2.58 billion in the same quarter of the previous year.

Quarterly EPS improved to Rs15.78, from a loss per share of Rs4.09 a year earlier. Revenue during the quarter reached Rs97.39 billion, while gross profit stood at approximately Rs18.88 billion.

The company’s quarterly operating profit was Rs17.23 billion, compared with an operating loss of Rs1.91 billion in the corresponding quarter of 2025.

Stronger financial position

The company’s balance sheet also showed considerable improvement. As of March 31, 2026, PRL’s total assets stood at Rs154.92 billion, up from Rs107.94 billion as of June 30, 2025.

Current assets increased sharply to Rs118.42 billion, compared with Rs72.58 billion at the end of June 2025. Inventories rose to Rs45.23 billion, while trade receivables stood at Rs33.17 billion.

Shareholders’ equity increased to Rs38.68 billion by March 31, 2026, from Rs26.60 billion at June 30, 2025, mainly reflecting the company’s return to profitability.

Cash generation turns positive

PRL also recorded a major improvement in cash generation from operations. The company generated Rs17.70 billion in net cash from operating activities during the nine-month period, compared with a net cash outflow of Rs13.18 billion in the same period last year.

The refinery used approximately Rs2.19 billion in investing activities, while financing activities resulted in a net cash outflow of Rs12.25 billion.

As a result, cash and cash equivalents increased to Rs6.08 billion at March 31, 2026, compared with Rs3.07 billion a year earlier.

No dividend recommended

Despite the significant improvement in earnings, the company’s board, in its meeting held on April 21, 2026, recommended nil dividend for the period ended March 31, 2026. The company also stated that its quarterly report would be transmitted through PUCARS separately within the specified time.

Overall, PRL’s nine-month results mark a notable turnaround from the loss recorded a year earlier. The sharp recovery in gross and operating profitability, stronger equity position and return to positive operating cash flows underline a substantially improved financial performance during the period.