Pakistan State Oil (PSO) Ends FY25 on a Strong Note

Pakistan State Oil (PSO), the country’s largest oil marketing company, wrapped up its financial year 2025 (FY25) with strong profit growth, even though overall sales were lower.

Profits more than doubled in Q4

In the last quarter (April–June 2025), PSO’s profit jumped to PKR 5.9 billion, more than double compared to the same period last year. This means its earnings per share (EPS) came in at PKR 12.6.

📢 Announcement: We're on WhatsApp – Join Us There! 

The jump came mainly because the company had to pay lower finance costs (interest on loans), thanks to declining interest rates and reduced borrowings.

Sales declined, but margins improved

PSO’s sales revenue dropped by around 12% YoY in Q4, as fuel volumes were slightly lower compared to last year. But despite lower sales, PSO’s gross margins improved. This was because the company faced fewer inventory losses due to better pricing conditions.

Full-year performance

For FY25, PSO posted a profit of PKR 21.2 billion, up by 34% compared to FY24. EPS for the year stood at PKR 45.2, while the company announced a healthy cash dividend of PKR 15 per share.

What’s next for PSO?

With borrowing costs coming down and circular debt pressures slightly easing, PSO looks in a better financial position than before. However, fuel demand trends, government policies, and global oil prices will continue to play a big role in shaping the company’s future performance.

Don't miss:

• Which cars are driving the rally in auto stocks?
• 5 High ROE stocks according to Topline Securities
• Why TPLP could go higher.

For investors: The big question is whether PSO can sustain this profit momentum in FY26, especially if sales volumes remain under pressure?

Source: Taurus Securities Limited

⚠️ 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 →