AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: The oil marketing sector in Pakistan is poised for a substantial rise in earnings, with companies under AKD Securities’ coverage, namely Pakistan State Oil (PSO) and Attock Petroleum Limited (APL), set to report a combined net profit after tax (NPAT) increase of 41% year-on-year for the fourth quarter of fiscal year 2025, according to a recent analysis by AKD Securities Limited.
The anticipated surge marks a 16% quarter-on-quarter growth, highlighting a significant recovery in the sector. However, for the full fiscal year, earnings for the AKD OMC universe are projected to grow by a modest 3% year-on-year.
A key factor contributing to this financial growth is the expected 31% year-on-year decline in finance costs for the quarter, with an annual reduction of 32% anticipated. This decrease in financial burdens is expected to positively impact overall profitability.
Additionally, the state-owned oil marketing company (OMC) has seen a notable reduction in its trade receivables, which have decreased to their lowest levels since June 2022, currently standing at PKR 454 billion. This reduction in receivables is likely to improve cash flow and financial stability.
AKD Securities maintains a ‘BUY’ rating on both PSO and APL, with target prices set at PKR 729 and PKR 825 per share, respectively, by December 2025. The projected dividend yields for fiscal year 2026 are 5.1% for PSO and 6.1% for APL, indicating promising returns for investors.
The report underscores a positive outlook for investors in the oil marketing sector, highlighting the potential for growth amid a challenging economic landscape.