3 Worst Performing Oil & Gas Stocks Of 2026

1. Pakistan State Oil Company Limited (PSO)

Pakistan State Oil Company Limited remains one of the key beneficiaries of ongoing energy sector reforms and liquidity improvement measures during 2026.

FY2026 Financial Outlook

Management expectations for FY26 continue to improve as finance costs decline and receivable recoveries strengthen.

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Liquidity Position Improved Significantly

The company’s receivables position has improved materially over the last two years. Trade debts declined from PKR 400 billion in late 2023 to PKR 288 billion by late 2025, followed by an additional reduction of PKR 14 billion during 2QFY26. Short-term borrowings also declined sharply from PKR 467 billion to PKR 325 billion. Combined with lower interest rates, finance costs reduced to PKR 11.4 billion during 1HFY26 compared to PKR 25.3 billion during 1HFY24. Management also highlighted that recovery ratios remained consistently between 100% and 104% through late 2025 and early 2026.

Circular Debt Resolution Could Unlock Further Liquidity

PSO is expected to remain one of the major beneficiaries of power sector circular debt resolution efforts. Payments from CPPA-G are expected to flow toward the company through SNGPL, potentially improving overall liquidity dynamics further during FY26.

Inventory And Fuel Portfolio Dynamics

The company’s profitability outlook is also supported by inventory gains following recent fuel price increases. Management estimates inventory gains of PKR 26.74 per share, while additional upside could emerge if international crude prices remain elevated. PSO also has 69 RLNG cargoes scheduled for the remainder of CY26, averaging nearly 700 mmcfd.

Latest Sales And Market Share Data

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Industry figures for April 2026 showed that PSO maintained market leadership across major fuel categories. During the 10-month period ending April 2026, the company maintained 39% market share in Motor Spirit and 43% share in High-Speed Diesel. Monthly market share also improved by 1 percentage point in both segments during April 2026. Total fuel sales during April 2026 stood at 591,000 metric tons, including 247,000 tons of Motor Spirit and 251,000 tons of High-Speed Diesel.

Conclusion

The energy sector’s 2026 outlook is increasingly being shaped by liquidity recovery, higher exploration intensity, operational resilience, and strategic diversification beyond traditional hydrocarbons. While each company operates with a different business model, all three are benefiting from structural developments within Pakistan’s energy landscape. Pakistan State Oil Company Limited remains heavily linked to improving circular debt dynamics, stronger recoveries, and fuel market leadership. Mari Energies Limited continues to differentiate itself through offshore expansion, reserve growth, mining exposure, and technology investments. Meanwhile, Pakistan Petroleum Limited is strengthening its long-term outlook through aggressive exploration activity, mineral projects, and improving liquidity trends. Based on the latest corporate briefing discussions, quarterly updates, and FY26 projections, these companies remain among the most closely watched energy plays on the Pakistan Stock Exchange for 2026.

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →