⚡ Flash Summary

Pakistan Refinery Limited (PRL) reported a loss after tax of Rs. 4.66 billion for the year ended June 30, 2025, a significant downturn compared to a profit of Rs. 4.06 billion in the previous year. This decline is attributed primarily to depressed refining margins, which resulted in a decrease in gross profits by Rs. 13 billion. Revenue saw a slight increase to Rs. 310.35 billion from Rs. 305.54 billion. The company achieved record annual production for HSD and MS, despite facing financial headwinds. The company successfully completed the Front End Engineering Design (FEED) for Refinery Expansion and Upgrade Project (REUP) and is currently evaluating EPC-F bids.

📌 Key Takeaways

• 📉 PRL reported a loss after tax of Rs. 4.66 billion for FY25, compared to a profit of Rs. 4.06 billion in FY24.
• 💰 Gross profit decreased significantly by Rs. 13 billion due to depressed refining margins.
• ⬆️ Revenue increased slightly to Rs. 310.35 billion from Rs. 305.54 billion year-over-year.
• ⛽ Highest ever annual production of HSD: 796,261 MT (6.16 million barrels).
• ⛽ Highest ever average daily production of HSD: 2,243 MT (17,356 barrels).
• 📅 Highest ever monthly sales during November-2024: 84,370 MT (0.65 million barrels) for HSD.
• ⛽ Highest ever annual production of MS: 295,553 MT (2.64 million barrels).
• ⛽ Highest ever average daily production of MS: 833 MT (7,447 barrels).
• ✅ Successfully completed Front End Engineering Design (FEED) of REUP in Q2 2024-25.
• 🚧 Evaluating EPC-F bids from prospective contractors for the Refinery Expansion and Upgrade Project (REUP).
• ⚠️ Loss / earnings per share decreased to (Rs. 7.40) from Rs. 6.45.
• ⬇️ Net Equity decreased from Rs. 29.6 billion to Rs. 26.6 billion, a 10.1% decrease.
• ⬆️ Total crude intake increased to 1,706,356 MT from 1,481,625 MT.
• ✅ During Q1 2025 (ended September 30, 2025) the company generated profit of Rs. 1.016 billion compared to loss of Rs. 2.35 billion in the same quarter last year.

🎯 Investment Thesis

Based on the current financial performance, I recommend a HOLD rating. While the company has made progress on operational efficiency and refinery upgrades, the near-term outlook is uncertain due to continued pressure on refining margins. A price target cannot be given due to high volatitlity.

⚡ Flash Summary

Pakistan Refinery Limited (PRL) reported a loss after tax of Rs. 4.66 billion for the year ended June 30, 2025, a significant downturn compared to a profit of Rs. 4.06 billion in the previous year. This decline is attributed primarily to depressed refining margins, which resulted in a decrease in gross profits by Rs. 13 billion. Revenue saw a slight increase to Rs. 310.35 billion from Rs. 305.54 billion. The company achieved record annual production for HSD and MS, despite facing financial headwinds. The company successfully completed the Front End Engineering Design (FEED) for Refinery Expansion and Upgrade Project (REUP) and is currently evaluating EPC-F bids.

📌 Key Takeaways

• 📉 PRL reported a loss after tax of Rs. 4.66 billion for FY25, compared to a profit of Rs. 4.06 billion in FY24.
• 💰 Gross profit decreased significantly by Rs. 13 billion due to depressed refining margins.
• ⬆️ Revenue increased slightly to Rs. 310.35 billion from Rs. 305.54 billion year-over-year.
• ⛽ Highest ever annual production of HSD: 796,261 MT (6.16 million barrels).
• ⛽ Highest ever average daily production of HSD: 2,243 MT (17,356 barrels).
• 📅 Highest ever monthly sales during November-2024: 84,370 MT (0.65 million barrels) for HSD.
• ⛽ Highest ever annual production of MS: 295,553 MT (2.64 million barrels).
• ⛽ Highest ever average daily production of MS: 833 MT (7,447 barrels).
• ✅ Successfully completed Front End Engineering Design (FEED) of REUP in Q2 2024-25.
• 🚧 Evaluating EPC-F bids from prospective contractors for the Refinery Expansion and Upgrade Project (REUP).
• ⚠️ Loss / earnings per share decreased to (Rs. 7.40) from Rs. 6.45.
• ⬇️ Net Equity decreased from Rs. 29.6 billion to Rs. 26.6 billion, a 10.1% decrease.
• ⬆️ Total crude intake increased to 1,706,356 MT from 1,481,625 MT.
• ✅ During Q1 2025 (ended September 30, 2025) the company generated profit of Rs. 1.016 billion compared to loss of Rs. 2.35 billion in the same quarter last year.

🎯 Investment Thesis

Based on the current financial performance, I recommend a HOLD rating. While the company has made progress on operational efficiency and refinery upgrades, the near-term outlook is uncertain due to continued pressure on refining margins. A price target cannot be given due to high volatitlity.