Pakistan's Oil and Gas Firms See Record Profits Amid Taxation Windfall
Pakistan's upstream oil and gas firms have reported one of their strongest years in recent memory. The four exploration and production companies included in the KSE-100 - Oil & Gas Development Company, Pakistan Petroleum, Mari Energies, and Pakistan Oilfields - collectively earned Rs459.9 billion in the financial year ending June 2026, up 30.9% from the previous year.
The increase in profits appears simple enough: oil production rose, realised oil prices were higher, revenues increased, and the largest companies paid out more cash to shareholders. However, the 31% rise in profits overstates the improvement in the underlying operating business.
Profit before tax actually fell 4% to Rs521 billion. The exceptional headline earnings growth was driven primarily by taxation rather than an equivalent increase in pre-tax profitability.
The basic operating environment improved during FY2026, with combined net revenue for the four companies rising 10.3% to Rs967.9 billion.