Oilboy Energy Limited significantly reduced its losses during the quarter ended September 30, 2025, posting a loss after tax of Rs897.9 million, reflecting a 92% improvement compared to the same period last year.

The company’s earnings per share (EPS) improved to Rs (0.04), compared to Rs (1.18) reported in the corresponding quarter of FY25.

The sharp reduction in losses was mainly driven by lower cost of sales, a substantial decline in finance costs, and tighter control over administrative and other operating expenses.

Despite these improvements, the company’s net sales declined 51.3% year-on-year to Rs46.39m, reflecting a challenging demand environment. However, cost of sales dropped 57.7% to Rs40.81m, enabling Oilboy Energy to post a gross profit of Rs5.59m, compared to a gross loss in the same quarter last year.

Administrative expenses fell 13.1% to Rs6.05m, while finance costs plunged 99.6% to just Rs9,817, providing significant relief to the bottom line. Other expenses also declined sharply, down 81.7% during the period.

As a result, loss before taxation narrowed by 95.7% to Rs466,336, while taxation and levies declined 24.2%.

Despite a weaker top line, the company’s aggressive cost rationalization and reduced financing burden played a key role in stabilizing financial performance during the quarter.