Karachi: Pakistan Petroleum Ltd (PPL) has reported a 7% year-on-year increase in profitability for the fiscal year 2026, amounting to PKR 98.5 billion, with earnings per share standing at PKR 36.2. The increase is attributed to higher revenues driven by volumetric growth and elevated prices resulting from geopolitical tensions, alongside a reduction in dry well costs and the partial reversal of a super tax provision.

According to AKD Securities Limited, PPL announced a cash dividend of PKR 12 per share, marking the highest payout ratio in a decade at 33%. The firm maintains its 'BUY' recommendation for PPL, setting a target price of PKR 412 per share by December 2026. The outlook remains positive due to improved exploration prospects, ongoing resolution of the gas circular debt, and strategic investments, including an 8.33% stake in the Reko Diq Mining Project and offshore interests in Abu Dhabi Block-5. The report highlights improvements in the company's cash payouts as a key factor in its optimistic forecast.