National Refinery Limited (NRL) has made a significant turnaround in its financial performance, posting a profit after tax of Rs6.16 billion for the year ended June 30, 2026, compared with a loss of Rs14.87 billion recorded in the previous year.

The company disclosed its financial results to the Pakistan Stock Exchange, with the Board of Directors recommending no cash dividend, bonus shares or right shares for the year.

Revenue rises sharply

According to the financial statements, NRL’s net revenue from contracts with customers increased to Rs440.84 billion during FY2026, compared with Rs307.66 billion in FY2025.

The stronger revenue performance, combined with improved cost management, helped the refinery move from a gross loss of Rs6.23 billion in the previous year to a gross profit of Rs23.54 billion in FY2026.

Distribution costs stood at Rs1.58 billion, while administrative expenses amounted to Rs1.36 billion. After accounting for other operating items, the company reported an operating profit of Rs20.16 billion, a major improvement from the operating loss of Rs7.70 billion recorded in FY2025.

Finance costs remain significant

Despite the improvement in operations, NRL continued to face substantial financing costs. Net finance costs amounted to Rs9.28 billion, compared with Rs10.33 billion in the previous year.

As a result, profit before taxation and levies reached Rs10.88 billion, compared with a loss of Rs18.03 billion in FY2025. After levies and taxation, the company posted profit before taxation of Rs10.21 billion and ultimately profit after taxation of Rs6.16 billion.

Earnings per share turn positive

The turnaround was also reflected in NRL’s earnings per share. Basic and diluted earnings per share stood at Rs77.09, compared with a negative Rs185.91 per share in FY2025.

This represents a notable shift from a loss-making position to positive earnings and highlights the scale of the company’s financial recovery during the year.

Assets and liquidity position

NRL’s total assets increased to approximately Rs166.24 billion as of June 30, 2026, compared with Rs149.50 billion a year earlier.

Current assets rose to Rs84.24 billion, supported by higher stock-in-trade, trade receivables and other current assets. However, total liabilities also increased to approximately Rs109.79 billion, from Rs99.18 billion in FY2025.

The company’s cash-flow position also improved considerably. Net cash generated from operating activities amounted to Rs15.42 billion, compared with an operating cash outflow of Rs6.21 billion in the preceding year. Net cash used in investing activities was Rs1.75 billion, while financing activities generated Rs3.00 billion.

No dividend announced

Despite returning to profitability, the Board recommended no cash dividend, bonus shares or right shares for FY2026. The company’s annual financial statements will be presented at its upcoming Annual General Meeting.

The AGM is scheduled for September 30, 2026, at 10:00 am in Karachi.

A notable turnaround for NRL

Overall, National Refinery’s FY2026 results mark a substantial improvement from the previous year. The combination of higher revenue, a return to gross and operating profitability, lower finance costs and positive earnings per share helped the company move firmly back into the black.

While financing costs and liabilities remain important areas to watch, the latest results indicate that NRL entered FY2027 from a considerably stronger earnings position than it had at the end of FY2025.