Karachi: National Refinery Limited (NRL) has announced a significant increase in its earnings for the first quarter of fiscal year 2027, with earnings per share reaching Rs144.68, up from Rs12.82 in the same period last year and recovering from a loss of Rs36.34 in the previous quarter.

According to JS Global, the year-over-year improvement in earnings was primarily driven by higher gross refining margins (GRMs) amid ongoing geopolitical tensions in the Gulf region. On a sequential basis, the refinery's profitability was bolstered by the absence of inventory losses and one-off adjustments that affected the fourth quarter of fiscal year 2026.

In the previous quarter, NRL had recorded significant financial setbacks, including a Rs7.0 billion net realizable value inventory write-down, a Rs13.5 billion write-off of crude customs duty receivables, and an Rs8.2 billion impact from a 2.5% cut in high-speed diesel (HSD) deemed duty. The gross margin improved to 14.4% in the first quarter of fiscal year 2027, compared to 5.2% in the same period last year, with GRMs calculated at US$25.6 per barrel.

The company also reported net sales of Rs152 billion for the quarter, representing a 91% year-on-year increase and a 2% rise from the previous quarter, driven by higher ex-refinery prices and increased demand, as reported by OCAC data. Additionally, NRL's finance costs decreased by 7% year-on-year and 54% quarter-on-quarter, thanks to reduced financing needs and the absence of significant exchange losses.

The effective tax rate for the company was recorded at 37% in the first quarter of fiscal year 2027, down from 45% in the same period last year. On the balance sheet, the company's stock in trade decreased to Rs43 billion in September 2026, while borrowings were reduced from Rs36 billion in June 2026 to Rs24 billion in September 2026. NRL is currently trading at a fiscal year 2027 estimated price-to-earnings ratio of 2.6 times.