Pakistan Petroleum Posts Record Profit and Announces Highest Dividend in FY26
Pakistan Petroleum Limited (PPL) reported a 7% rise in FY26 profit to Rs 98.53 billion and declared a record total dividend of Rs 12 per share, driven by higher oil prices, increased production and a tax reversal.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Oil & Gas sector gains from PPL's record profit and dividend, suggesting a Buy bias on PPL.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- Oil & GasPositively affected
Companies
Companies Mentioned
- PPL· Positively affected · Buy bias
Mentions in This Briefing
Sectors: Oil & Gas — Positive · Buy bias. PSX tickers: PPL. Oil & Gas sector gains from PPL's record profit and dividend, suggesting a Buy bias on PPL.
Full Story
Open on ProPakistani## Profit Surge and Dividend Announcement
Pakistan Petroleum Limited (PSX: PPL) announced its FY26 results, showing a 7 percent year‑over‑year increase in net profit to Rs 98.53 billion. The uplift was attributed to stronger oil prices, higher hydrocarbon output and the reversal of the super‑tax after a Federal Constitutional Court ruling.
The company also declared a record interim cash dividend of Rs 6 per share for Q4 FY26, bringing the full‑year payout to a historic Rs 12 per share.
## Quarterly Performance Highlights
- Q4 FY26 earnings jumped 93 percent YoY and 80 percent quarter‑over‑quarter to Rs 37.38 billion, translating to earnings per share of Rs 13.74. - Sales for the quarter rose 64 percent YoY to Rs 84.9 billion, driven mainly by higher oil prices and increased production. FY26 total sales reached Rs 264 billion.
## Production Update
- Gas fields: Kandhkot output grew 18.6 percent YoY, Nashpa surged 80 percent, while Mari fell 4.3 percent. - Oil fields: Nashpa production rose 32.1 percent YoY, and the TAL Block delivered 12,687 barrels per day, a 28 percent increase, partially offsetting lower crude output from supply disruptions.
## Other Financial Movements
- Other income fell 32 percent YoY to Rs 3.2 billion due to lower interest rates and the absence of a one‑off Rs 1.6 billion insurance claim recorded in the prior quarter. - The recovery ratio slipped to 86 percent in Q4, with trade receivables of Rs 623.4 billion, compared with Rs 611.6 billion in Q3.
## Investment in Reko Diq
PPL increased its investment in the Reko Diq copper‑gold project to Rs 7.5 billion in June 2026, up from Rs 2.6 billion a year earlier, taking total FY26 investment to Rs 28.6 billion versus Rs 12.7 billion in FY25.
## Outlook
The strong earnings, robust dividend and continued capital deployment reinforce PPL’s position as a leading oil‑and‑gas player on the PSX, supporting investor confidence in the sector.