Pakistan E&P 1HFY26 Results: Lower Oil Prices Trim Topline, Dividends Hold Up at PPL, POL, Mari

Pakistan's exploration and production companies, the firms that pump the country's oil and gas, reported a softer first half of FY26 as lower realised crude prices trimmed their revenue. The interesting part of the results was how well margins and dividends held up despite that drag, with cost discipline doing much of the work and one name, Mari, still growing earnings.

What the E&P half-year results showed

Pakistan Oilfields set the tone for the period. Net sales fell about 9 percent year on year, a direct read of lower realised oil prices, and gross profit fell roughly in step. The notable part was that gross margins stayed close to 65 percent, broadly stable, which points to tight cost control rather than a collapse in profitability. Cumulative exploration costs, the money spent drilling that can dent profit when wells disappoint, dropped 62 percent for the half, easing the pressure further. POL still declared an interim dividend of Rs27.50 per share for the second quarter.

Pakistan Petroleum kept its payout going as well, with the board declaring an interim cash dividend of Rs2 per share for the quarter ended 31 December 2025 at its meeting on 13 February 2026. Mari was the grower of the group, reporting second quarter net income of about Rs12.9 billion, up 14 percent year on year, with earnings per share rising to Rs10.73 from Rs9.38.

Why lower oil prices matter for E&P stocks

E&P companies earn on two things: how much oil and gas they produce, and the price they realise on it. When global crude eases, the price leg works against them even if production holds, so revenue and gross profit can slip together. What separates a resilient result from a weak one is whether margins and cash flow hold up. Stable margins and maintained dividends, as seen here, suggest the businesses are managing the price cycle rather than being knocked around by it.

Which stocks, and why

Pakistan Oilfields reads as neutral. The 9 percent sales decline is real, but stable margins, much lower exploration costs and a large Rs27.50 dividend balance it out, so the half is steady rather than weak. Pakistan Petroleum is also neutral on the information available: the maintained Rs2 dividend is a steady signal, against the same backdrop of softer oil prices weighing on the topline. Mari is the positive of the three, the only one to grow both earnings per share and net income in the period, which shows production and cost trends working in its favour even as prices softened.

What to watch

The single biggest swing factor is the international oil price, which feeds straight into realised revenue. Watch where crude settles after the Middle East driven volatility, since a recovery would lift toplines and a further fall would extend the squeeze. Also track each company's production trend, exploration success, and the level of overdue receivables across the energy chain, which can tie up cash even when reported profit looks fine.