October 29, 2025 (MLN): Pakistan Petroleum Limited (PSX: PPL) reported a profit after taxation of Rs20.04bn for the quarter ended September 30, 2025, down 12% from Rs22.70bn in the corresponding quarter last year.

Basic and diluted earnings per share declined 12% to Rs7.36 compared to Rs8.34 in 1QFY25.

The company declared cash dividend at Rs2 per share.

Revenue from contracts with customers decreased 14% year-on-year to Rs57.38bn from Rs66.79bn, reflecting lower sales volumes during the quarter.

Operating expenses declined 7% to Rs14.06bn from Rs15.13bn. Royalties and other levies decreased 18% to Rs8.77bn from Rs10.72bn. Total expenses and levies declined 12% to Rs22.84bn from Rs25.85bn.

Gross profit contracted 16% to Rs34.54bn against Rs40.93bn in 1QFY25, with the gross margin declining to 60.2% from 61.3% in the prior year quarter.

Exploration expenses declined 74% to Rs663.7m from Rs2.58bn, while administrative expenses decreased 9% to Rs1.52bn from Rs1.67bn. Finance costs declined 12% to Rs508.8m from Rs577.5m.

Other charges decreased 26% to Rs3.02bn from Rs4.10bn.

Other income declined 68% to Rs2.08bn from Rs6.49bn in the previous year.

Profit before taxation stood at Rs30.81bn, down 19% from Rs37.87bn in 1QFY25.

Taxation declined 29% to Rs10.77bn from Rs15.17bn in the prior period.

The company concluded 1QFY26 with a net profit of Rs20.04bn, delivering a net profit margin of 34.9% compared to 34.0% in 1QFY25.

The profit decline was driven by lower revenue generation, compressed gross profit, and a significant 68% drop in other income, partially offset by substantially reduced exploration expenses and lower taxation charges.