Pakistan’s three listed oil refineries reported year-on-year profit growth of more than 1,000 percent in the July- September quarter (1QFY27), while Pakistan Oilfields and Attock Petroleum also recorded higher earnings.
These results reflect the windfall effect on refinery sector since the Petroleum Division switched to daily fuel price updates on 18 July 2026.
Attock Refinery Limited’s net profit rose to Rs. 18.65 billion in the first quarter of fiscal year 2027 from Rs. 1.45 billion a year earlier, an increase of 1,184 percent.
National Refinery Limited reported a net profit of Rs. 11.57 billion, up from Rs. 1.03 billion in the same period last year, representing growth of about 1,029 percent.
Pakistan Refinery Limited’s net profit climbed to Rs. 13.97 billion from Rs. 1.02 billion, an increase of approximately 1,274 percent.
Oil and Gas Companies Report Higher Profits
Pakistan Oilfields reported net profit of Rs. 8.19 billion for the quarter, compared with Rs. 5.43 billion a year earlier, an increase of about 51 percent.
Attock Petroleum’s net profit rose approximately 74 percent to Rs. 6.64 billion from Rs. 3.81 billion.
Higher Refining Margins Support Earnings
The refineries’ earnings surge coincided with stronger international refining margins, inventory gains and increased product sales amid global supply uncertainty linked to the US-Iran and Russia-Ukraine wars.
Brokerage estimates published ahead of the quarterly results put average gross refining margins at around $30 per barrel during Q1FY27.
Diesel was the strongest contributor, with an estimated spread of $55 to $57 per barrel, while petrol’s spread was estimated at around $25 per barrel.
Attock Refinery was estimated to have achieved a gross refining margin of approximately $40 per barrel, alongside inventory gains of Rs. 1.5 billion.
National Refinery’s estimated margin stood at $28.9 per barrel, with projected inventory gains of Rs. 2.7 billion.
Pakistan Refinery’s estimated margin was $26 per barrel.
Cheap Fuel Stock Getting Expensive
Higher international product prices can also increase the value of fuel stocks purchased at lower prices.
However, the earnings of oil producers and petroleum marketers have different drivers from those of refineries, so their profit increases should not be attributed entirely to refining margins.
According to Arif Habib Limited (AHL), total refinery upliftment increased 37.3 percent year-on-year to 3.192 million tonnes during the quarter.
Industry capacity utilisation reached 59.5 percent in September, compared with 50.7 percent a year earlier.
Govt Lowers Diesel Margin Cap
The government lowered the maximum HSD crack spread used in domestic diesel pricing to $38 per barrel from $41.89 per barrel on October 20.
The revised ceiling followed an earlier arrangement that had been due to expire around that date.
Topline Securities earlier reported the change after it appeared in OGRA’s pricing data and was confirmed with a refinery company.
The revised limit could put pressure on refining margins in the following quarter.
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