KARACHI, Oct 31 (Focus Pakistan) - KSE-100 earnings rose 23% to Rs550 billion in the July–September quarter, yet nearly all of that growth came from one place: oil.
Take out exploration and production companies, refineries and oil marketing firms, and profits across the rest of the index grew only 5% year-on-year, a brokerage analysis showed. Total earnings also slipped 8% from the April–June quarter. Measured in dollars, index companies made $2.0 billion, a 25% gain on last year.
The analysis covers 85 of the 100 index companies, together worth about 96% of the benchmark’s market value.
Refiners’ twentyfold jump
Refiners staged the quarter’s most dramatic comeback. The sector earned Rs32.2bn in 1QFY27. A year ago it made Rs1.6bn, and in the June quarter just Rs1.1bn. Wider gross refining margins during the US-Iran war powered the surge.
Oil marketing companies followed close behind. They booked Rs32.2bn in profit, 2.4 times last year’s Rs13.2bn, after losing Rs20.9bn in the June quarter. Inventory losses three months ago turned into inventory gains this time.
Exploration and production firms earned Rs114.0bn, up 43% from a year earlier. Higher oil and gas prices lifted revenue, and other income added to the gain. Against the June quarter, though, E&P profit fell 47%.
Banks slip, still pay the most
Banks went backwards. Higher operating costs cut sector earnings 2%, both year-on-year and quarter-on-quarter, to Rs161.5bn.
Payouts held up. Banks handed out Rs74.9bn in dividends, more than any other sector. United Bank Limited paid Rs20.0bn, Meezan Bank Rs14.4bn and MCB Bank Rs10.6bn.
Also Read: Pakistani Banks Spend 53 Paisa to Earn Every Single Rupee
Fertiliser producers had a strong quarter on every measure. Profit rose 11% year-on-year and 9% quarter-on-quarter to Rs47.0bn as urea sales volumes climbed and both urea and DAP prices firmed, boosting gross margins. Dividends jumped 72% to Rs33.7bn. Fauji Fertilizer alone paid Rs26.3bn, and Engro Fertilizers paid Rs7.3bn.
Cement makers lifted profit 13% year-on-year to Rs48.6bn on higher sales. Tax rates returned to normal after deferred tax adjustments in the June quarter, and that pulled earnings 11% below the previous three months.
The automobile sector earned Rs25.7bn, up 19% on the year but 11% lower than the June quarter. Sales volumes dropped and margins narrowed. Customers also put off purchases while confusion over auto policy lingered. The sector still raised dividends 10% to Rs11.7bn. Atlas Honda paid Rs7.0bn and Indus Motor Rs4.4bn.
Drugmakers posted Rs9.6bn, up 14% year-on-year and 81% from the June quarter, helped by a seasonal shift in demand.
KSE-100 dividends climb 20%
Index companies declared Rs180.7bn in cash dividends, up from Rs150.7bn a year ago. That equals 32.9% of earnings, slightly below last year’s 33.6% payout ratio. Dividends dropped 39% from the June quarter, when most companies announce final payouts alongside annual results.
E&P payouts rose 31% to Rs26.9bn. Oil and Gas Development Company contributed Rs21.5bn and Pakistan Petroleum Rs5.4bn.
Food and personal care went the other way. Sector dividends shrank 33% to Rs7.3bn, with Nestle Pakistan paying Rs4.4bn and Unilever Pakistan Foods Rs2.0bn. Hub Power kept its Rs6.5bn payout unchanged. Bestway Cement supplied the cement sector’s entire Rs6.0bn.
The headline number looks healthy. Beneath it, Pakistan’s non-oil companies grew profit by just 5% and earned 8% less than they did three months earlier.
