Pakistan Refinery Limited (PRL) reported loss per share of PKR 7.40 for FY25, compared to earnings per share of PKR 6.45 in FY24. Furthermore, in 1QFY26, the company reported earnings per share of PKR 1.61, compared to loss per share of PKR 3.73 in the same period last year (SPLY).
During FY25, the company produced 796k tons of HSD and 300k tons of MS. Crude sourcing relied primarily on the Middle East roughly 70% from ADNOC, 20% from Aramco, and 10% local crude. Capacity utilization remained around 80–85%. Management highlighted that increasing utilization further would require running heavier crude, which would alter yields by increasing furnace oil production.
Given the record MS and HSD output this year, management aims to improve efficiency and sustain higher production. The company has started receiving sales tax on a temporary basis and is in discussions with the government to resolve this permanently.
GRM in 1QFY26 was around US$5/bbl, compared with US$1.5 2.0/bbl during FY25. Management emphasizes that the recent GRM improvement was not due to the resolution of sales tax issue. Freight costs currently stand at US$1.3–1.5/bbl, consistent with Middle East sourcing, while energy cost is about US$1/bbl. Regarding the refinery upgradation, EPC bids have been received; the company is negotiating pricing and other terms with contractors. As this is a US$2bn project, financing remains a challenge and things will materialize over time alongside commercial negotiations.
Important Disclosures
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