Pakistan’s Oil Marketing Companies Anticipate Decline in Quarterly Profits

Karachi: Pakistan’s leading oil marketing companies, Pakistan State Oil (PSO) and Attock Petroleum Limited (APL), are expected to report a combined net profit after tax (NPAT) decline of 17% year-on-year and 28% quarter-on-quarter for the third quarter of fiscal year 2025, according to projections from AKD Securities Limited.

The anticipated decrease in earnings is attributed to several factors. The companies experienced lower volumetric sales during the period, faced lower effective taxes compared to the same period last year, and encountered modest inventory losses due to a decline in oil prices.

Despite the earnings drop, the companies are expected to see a reduction in finance costs, with a projected 37% year-on-year decline for the quarter. The majority of this relief is expected to come from PSO, which is anticipated to reduce its finance costs by 39% year-on-year.

AKD Securities Limited continues to recommend a ‘BUY’ rating for both PSO and APL, setting target prices of PKR 729 and PKR 825 per share by December 2025, respectively.