Pakistan Petroleum Limited (PSX: PPL), one of the country’s largest oil and gas exploration and production companies, announced its results for the first quarter of its 2027 financial year (July to September 2026) after a board meeting on 29 October 2026. The filing contains the financial statements only; the full quarterly report with the directors’ review will follow, so some changes are not yet explained. Figures below are for the company on its own (unconsolidated) unless marked as group figures.
The headline: a profit after tax of Rs 25.2 bn, or Rs 9.26 a share, up 25.5% from Rs 20.1 bn (Rs 7.38) a year earlier. Group profit was Rs 25.2 bn (Rs 9.27 a share). The board declared an interim cash dividend of Rs 2 a share.
The quarter in numbers
| Rs M | Jul to Sep 2026 | Jul to Sep 2025 | Change |
|---|---|---|---|
| Revenue | 73,998 | 56,812 | +30.3% |
| Operating expenses | (15,287) | (13,648) | +12.0% |
| Royalties and other levies | (15,065) | (8,611) | +75.0% |
| Gross profit | 43,646 | 34,553 | +26.3% |
| Exploration expenses | (3,186) | (633) | 5.0 times |
| Administrative expenses | (1,663) | (1,494) | +11.3% |
| Finance costs | (646) | (489) | +32.2% |
| Other charges | (3,482) | (3,013) | +15.6% |
| Share of loss of associates | (63) | (99) | |
| Other income | 3,001 | 2,024 | +48.3% |
| Profit before tax | 37,606 | 30,849 | +21.9% |
| Tax (effective rate 33.0% against 34.9%) | (12,403) | (10,761) | +15.3% |
| Profit after tax | 25,203 | 20,088 | +25.5% |
| Earnings per share, Rs | 9.26 | 7.38 | +25.5% |
What drove the result
Much higher revenue. Sales rose 30% to Rs 74.0 bn. The filing does not split this between production volumes and prices; the full report should give the detail.
Royalties rose faster than sales. Royalties and other levies jumped 75% to Rs 15.1 bn, against the 30% rise in revenue. The filing does not explain the difference. Even so, gross profit rose 26% to Rs 43.6 bn.
Exploration costs jumped. Exploration expenses rose to Rs 3.2 bn from Rs 0.6 bn. These costs swing with drilling activity and with wells that are written off, and the filing gives no breakdown.
Other income and tax helped. Other income, mostly from the company’s cash and investments, rose 48% to Rs 3.0 bn, and the effective tax rate fell to 33% from 35%. Together these lifted after-tax profit growth to 25%, above the 22% rise in pre-tax profit.
Cash and the balance sheet
- Collections were strong. Cash received from customers was Rs 86.4 bn, more than the quarter’s revenue, and operating cash flow rose to Rs 33.1 bn from Rs 24.5 bn.
- Unpaid bills still huge. Trade debts, mostly money owed by state gas and power companies as part of the energy sector’s circular debt, were Rs 622 bn, almost unchanged from June. That is about Rs 229 a share, more than the share price.
- Cash and investments. Short-term investments rose to Rs 120.3 bn and cash was Rs 4.9 bn, a total of about Rs 125 bn. Long-term investments rose to Rs 125.3 bn, including a further Rs 5.0 bn put into PMPL during the quarter.
- Little debt. Long-term financing was about Rs 1.4 bn including the current portion. Equity rose to Rs 804.5 bn.
Dividend
The Rs 2 interim dividend is payable to shareholders on the register at the close of business on 11 November 2026; the share transfer books close from 12 to 16 November. Based on that, the shares should trade ex-dividend from about 11 November. The payout is about a fifth of the quarter’s earnings per share.
Valuation snapshot
At the 28 October close of Rs 215.08:
| Measure | Value |
|---|---|
| Group earnings per share, last 12 months (October 2025 to September 2026) | about Rs 37.8 |
| Price to earnings | about 5.7 times |
| Book value per share (the company) | about Rs 296, so price to book of about 0.73 |
| Trade debts per share | about Rs 229 |
| Market value (2.72 billion shares) | about Rs 585 bn |
| Share price, last 52 weeks | low Rs 182.30, high Rs 281.52 |
The stock trades at about three quarters of its book value and under 6 times earnings, about 24% below its 52-week high. A large part of the company’s assets is tied up in unpaid bills from state companies, and how and when those are settled is the main open question for shareholders.
What to watch next
- The full quarterly report. It should explain the jump in royalties and exploration costs and give production volumes.
- Circular debt. Any settlement plan that turns the Rs 622 bn of receivables into cash or dividends.
- Exploration results. Higher exploration spending can mean new discoveries or more dry wells.
- Dividend growth. Whether strong cash collections lead to larger payouts during the year.
- Reko Diq. The company keeps investing in the copper and gold project through PMPL.
The bottom line
PPL started its financial year with a strong quarter: revenue up 30%, profit up 25% and cash collections better than billing. Higher royalties and exploration costs held back the gain, and the filing does not explain them yet. The shares remain cheap on earnings and book value, while the size of the unpaid receivables remains the main open question.
You can follow PPL’s price, Pulse Score, dividend history, results calendar and off-market trades in the Market Pulse Hub dashboard under PSX.
Bilal, Market Pulse Hub
Source: Pakistan Petroleum Limited, financial results for the quarter ended 30 September 2026 sent to the Pakistan Stock Exchange (unaudited unconsolidated and consolidated condensed interim financial statements and the dividend notice). Earlier quarters from company filings. Prices from the PSX data portal. Twelve-month, per-share and valuation figures are our calculations. This article is for education and information only and is not investment advice.