techend
By Ariz Riaz
Wafi Energy Pakistan Limited has announced a robust financial performance for 2025, with net profit rising to Rs3.54 billion, marking a 7.5 percent increase from the previous year’s Rs3.30 billion.
The oil marketing company, listed on the Pakistan Stock Exchange, also declared a final cash dividend of Rs4 per share, representing 40 percent, in addition to the interim dividend of Rs3 per share already distributed during the year.
Revenue and Profitability
Net sales for the year crossed Rs468 billion, reflecting a 9.6 percent year-on-year growth. Gross profit surged by more than 21 percent, demonstrating the company’s resilience despite volatile global energy prices.
Earnings per share improved to Rs16.56, up from Rs15.41 in 2024, providing enhanced returns to shareholders.
Cost Management and Expenses
The company achieved a 5.7 percent reduction in finance costs, indicating improved debt management and benefits from a favorable interest rate environment. However, operating expenses increased substantially during the year.
Distribution and marketing costs rose nearly 15 percent, driven by higher sales activity and market expansion efforts. Other operating expenses more than doubled compared to the previous year, though the company did not provide specific details on the factors behind this increase.
Wafi Energy’s share of profit from associates declined slightly by 5.8 percent, limiting its contribution to overall pre-tax earnings. The company also faced a substantial tax liability of Rs4.6 billion during the period.
Network Expansion and Operations
During 2025, Wafi Energy expanded its Shell retail network by 35 new sites, including a second eco-friendly location constructed using recycled materials. The expansion brings the company’s nationwide retail network to more than 680 sites.
The lubricants business maintained strong growth across both consumer and industrial segments, while partnerships with original equipment manufacturers were strengthened. The company also expanded its mining portfolio and recorded growth in indirect and process oil segments.
Management Commentary
Chief Executive Officer Zubair Shaikh expressed satisfaction with the company’s performance while emphasizing its forward-looking strategy.
“We achieved robust performance while investing for growth, expanding in priority areas, and enhancing the Shell customer experience,” Shaikh said. He added that in 2026, the company aims to accelerate growth, enhance shareholder value, and invest in Pakistan’s energy future.
Future Outlook
Looking ahead, Wafi Energy plans to explore potential acquisitions within the oil marketing sector as part of its growth strategy. The company is also advancing the establishment of a Dubai-based subsidiary to boost commercial activities and strengthen its regional presence.
These strategic initiatives underscore the company’s commitment to sustainable growth and consolidating its footprint both within Pakistan and beyond its borders.
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