⚡ Flash Summary

Wafi Energy Pakistan Limited’s half-year report for June 30, 2025, reveals a mixed financial performance. The company reported a net profit of PKR 1,278 million, driven by steady market share in motor fuels and growth in premium fuels and lubes segments. Revenue increased slightly to PKR 225.604 billion, while earnings per share (EPS) stood at Rupees 5.97. Despite a stable economic environment in Pakistan, challenges remain in supply chain optimization and retail expansion, impacting overall profitability and requiring continued strategic initiatives to maintain market position.

📌 Key Takeaways

• 📈 Revenue increased slightly to PKR 225.604 billion from PKR 223.541 billion year-over-year.
• ✔️ Net profit stood at PKR 1,278 million for the half-year ended June 30, 2025.
• 💰 Earnings per share (EPS) reported at Rupees 5.97.
• ⚠️ Cost of products sold remained high at PKR 207.761 billion.
• ⛽ Premium fuel, Shell V-Power, achieved its highest-ever monthly sales in June.
• 🏪 Non-fuel retail showed an upward trend with Shell Select convenience stores.
• ➕ Added 12 new sites and launched 6 new Shell Select stores during the quarter.
• 🤝 Strengthened partnerships with key OEMs including Atlas Honda, Hyundai, and Suzuki.
• 🌍 Expanded Lubricants Supply Chain (LSC) to secure competitive sourcing for local and imported base oils.
• 🌱 Published the 2025 Sustainability Report, reaffirming commitment to UN Sustainable Development Goals (SDG).
• ⚠️ Finance costs increased from (1,046.820) to (1,169.705) million.
• ⚠️ Long-term investments decreased from 5,975.703 to 5,912.342 million.
• ✔️ The Company reported a dividend cash payout of Rs. 5 per share.
• ✔️ Total Equity reached PKR 23.247 billion.

🎯 Investment Thesis

Wafi Energy is a HOLD due to its stable yet modest growth prospects. The company’s performance reflects steady market share and profitability, offset by increasing costs and competitive pressures. The company did publish a sustainability report and expanded on their social initiatives. A BUY recommendation would require clearer evidence of significant revenue growth and improved cost management. HOLD with a price target range of PKR 250-270 within the next 12 months, based on a conservative earnings multiple given the current market conditions.