Karachi: Pakistan State Oil Company Ltd (PSO) has reported a substantial standalone net loss of PkR23.1 billion for the fourth quarter of fiscal year 2026, a sharp reversal from the PkR5.6 billion profit recorded in the same period last year. The company attributes the disappointing results to lower gross margins and higher finance costs, leading to a full-year net profit after tax of PkR15.1 billion, marking a 28% year-over-year decline from PkR20.9 billion in FY25. Despite the losses, PSO announced a final cash dividend of PkR10.0 per share.

According to AKD Securities Limited, PSO's net revenues remained relatively stable at PkR809.0 billion compared to PkR812.8 billion in the fourth quarter of FY25, with a 9% quarter-over-quarter increase primarily driven by price adjustments despite a decline in total offtakes. The company reported a gross loss of PkR33.7 billion, a significant downturn from the PkR86.5 billion gross profit in the previous quarter, attributed to inventory markdowns following a decrease in international crude and fuel prices during the period.

AKD Securities maintains a 'BUY' call on PSO with a target price of PkR900 per share by December 2026, citing factors such as pending margin revisions on regulated products, anticipated volumetric recovery due to enhanced mobility and industrial activity in FY27, easing financing costs amid a declining interest rate environment, and the ongoing resolution of gas sector circular debt backed by the International Monetary Fund, which is expected to improve cash flow.