Wafi Energy Profit in H1 2025

Company expands retail, lubricants growth while pursuing new investments in Pakistan’s oil marketing sector

Wafi Energy Pakistan Limited (WEPL) has reported a profit after tax of Rs1.28 billion for the first half of 2025, marginally lower than the Rs1.32 billion recorded in the same period last year. The company’s Board of Directors also authorized management to explore new investment and acquisition opportunities in the oil marketing sector, reflecting an appetite for expansion despite relatively flat earnings.

The half-yearly results come against a backdrop of stability in Pakistan’s oil and gas sector, which helped contain the national import bill during the period. WEPL maintained profitability through steady motor fuel sales, a rise in premium fuel uptake, and continued growth in its lubricants division.Wafi Reports 873M Profit in1QFY25

The lubricants segment, operated under the Shell brand, showed resilience across both consumer and industrial markets. Seasonal demand from the agriculture sector boosted retail sales, while partnerships with major manufacturers including Atlas Honda, Hyundai, and Suzuki underpinned industrial volume growth. Supplies to the Reko Diq mining project and a contract with Sindh Engro added further support, with management citing these as key drivers of sector diversification. The company also showcased Shell’s technology leadership at an industry event and enhanced its supply chain by securing competitive base oil sourcing.

In retail operations, WEPL expanded its footprint with 12 new fuel sites and six additional convenience stores, while upgrading existing stations to improve service. Digital engagement tools were introduced to strengthen customer interaction and frontline employee performance, signaling a shift toward technology-driven retail solutions.

On the Environmental, Social, and Governance (ESG) front, WEPL released its first 2025 Sustainability Report. The document outlined initiatives in education, clean energy access, gender equality, and climate action. Through the Tameer Trust, WEPL engaged 400 young participants in entrepreneurship programs, leading to 95 new business ideas. Community-focused projects included road safety awareness and Access to Clean Energy programs, which deployed solar-powered solutions to rural households, benefiting more than 5,000 people. Nationwide observance of Safety Day reinforced the company’s focus on workplace health and safety standards.

The company’s results reflect a mixed picture for Pakistan’s downstream energy sector. While profitability remains steady, margins are tight due to fluctuating international oil prices and currency pressures. The modest decline in earnings mirrors broader industry challenges, but WEPL’s network expansion and focus on high-margin lubricants suggest a strategy aimed at cushioning volatility in the motor fuel market.

Industry analysts note that WEPL’s decision to explore new acquisitions and investments could reshape competition in Pakistan’s oil marketing sector, which has seen heightened activity in recent years. The entry of international and regional players, coupled with deregulation trends, has intensified competition for market share. WEPL’s moves may indicate an intention to consolidate operations and strengthen its presence in retail fuels and value-added services.

The company emphasized its continued commitment to operational excellence, financial resilience, and sustainability. Management said that focusing on digital transformation, renewable energy initiatives, and customer engagement would be critical to navigating the sector’s evolving dynamics.

Closing its financial update, WEPL highlighted its dual priorities: sustaining shareholder value while delivering long-term social and environmental impact. The company stressed that its growth strategy aligns with Pakistan’s broader energy transition goals and community development needs.

With profitability stable, retail and lubricant expansion underway, and fresh investments on the horizon, Wafi Energy Pakistan Limited enters the second half of 2025 positioned to balance financial strength with its role as a responsible corporate citizen.