My Petroleum (Pvt.) Limited (“My Petroleum” or “the Company”) was incorporated in Jan-16 is a private limited company as per the repealed Companies Ordinance 1984 (now called the Companies Act, 2017).

Mr. Tariq Wazir Ali, founder of the Company, entered the business arena through POL products trading. Later, he formally established a trading company, named My Trading (Pvt.) Ltd., for the said purpose. Over time, he set up a logistics company, My Logistics (Pvt.) Ltd., with the sole purpose of POL product transportation. In Jan-16, My Group ('the Group') was formally registered, and My Petroleum was set up in the upstream POL supply chain. The Company began commercial operations in Sep-19 after acquiring the license to operate as an OMC in Dec-16. The Group holds interests in the steel sector and has set up a bars and billets manufacturing facility. Lately, the Group has tapped into the mining and mineral segment of the country by formally registering My Mining and Minerals (Pvt.) Ltd. Every expansion and/or acquisiton is primarily backed by equity.

The Company is primarily engaged in the storage, distribution, and marketing of petroleum products and lubricants. For this, the Company imports and procures refined oil from local refineries as well. The Company has set up dealer-based retail outlets across Punjab and Sindh. My Petroleum has a total storage capacity of ~5,500MT with storage facilities located at Habibabad and Mirpurkhas. As per the details shared by OGRA, the Company operates through a network of ~81 retail outlets.

My Petroleum is a family-owned business, with a major stake held by Mr. Tariq Wazir Ali (~95.3%) and his wife (~4.6%). While, the rest is held by Directors.

The Company is a family-owned venture. Stability in the leadership provides comfort to the overall ownership structure.

The sponsors are well-versed with an experience of over two decades in managing a diversified portfolios with expertise in the energy, logistics and steel sectors, through My Petroleum (Pvt.) Ltd., My Energy (Pvt.) Ltd., My Logistics (Pvt.) Ltd., My Trading (Pvt.) Ltd.,and My Steel (Pvt.) Ltd. Lately, the sposors have setup My Mining and Minerals (Pvt.) Ltd.

The financial strength of the sponsors is considered strong to support the Company, if needs be.

My Petroleum has a five-member Board (BoD), dominated by the sponsoring family. The BoD comprises two Executive and three Non-Executive Directors. Whereas the induction of an Independent Director can improve the governance framework of the Company.

Mr. Tariq Wazir Ali, the BoD's Chairman, holds two decades of professional experience. He guides the BoD through useful insights into the oil market and in developing effective policies.

Formal policies and procedures are devised by the CEO/Chairman. The Board is assisted by the Audit and Risk committees. The Board and committee meetings are held on a quarterly basis with considerable attendance while maintaining adequate minutes.

The External Auditors of the Company, M/s Ilyas Saeed & Co. Chartered Accountants, have expressed an unqualified opinion on the financial statements for the year ended FY24. The Company has yet to finalize draft management accounts as of FY25, which are to undergo an audit process.

The Company operates through fifteen departments, headed by independent Heads. The technical, sales, and administration department heads directly report to the COO. All other departmental Heads report to the Executive Director (ED), or the CFO. The COO, ED and the CFO then reports to the CEO. The CEO is the man at the last mile and makes all the pertinent decisions. 

Mr. Tariq, the CEO, holds an overall experience of ~21 years in the relevant industry and has been associated with the Company since its inception. He is assisted by a team of professionals. CFO has resigned, and the operations are headed directly by the finance director Mr. Muhammad Talha Ashraf,  having overall 7 years of finance experience. The senior management team carries adequate and relevant professional experience.

The Company has formulated two management-level committees, namely: the Risk Management Committee and the Technical Committee. These committees meet on a quarterly basis and have adequately documented minutes. Further, all Head of departments meets on a daily basis to discuss pertinent matters.

The Company has implemented and is using all key modules of the ERP system. Top management receives a daily performance report of operations which results in optimal monitoring.

The Company does not have a separate department for internal audit functions. The establishment of a separate and independent internal audit department will improve transparency.

Pakistan's energy sector remains heavily reliant on imports. In FY25, the country's petroleum product consumption increased by ~7% YoY, reaching ~16.3mln metric tonnes (MMT) compared to ~15.3 MMT in FY24. This growth was largely driven by a rise in motor vehicle sales. Motor Spirit (MS) continued to lead in volume with sales of ~7.6 MMT (FY24: ~7.14 MMT), followed by High-Speed Diesel (HSD) at ~6.89 MMT (FY24: ~6.26 MMT). In contrast, Furnace Oil (FO) consumption saw a significant decline of ~23%, dropping from ~1.04 MMT to ~0.81 MMT. It's expected that the recent floods will impact the overall demand of the sector, impacting its cash flows and liquidity. Maintaining stable liquidity requires vigilance.

The top 5 OMC players hold ~79% market share in sales. Out of the remaining ~21% market share, My Petroleum holds ~0.4% of the share in POL sales.

During FY25 the topline of the Company declined by ~9.5% and reported at ~PKR 21,067mln (FY24: ~PKR 23,287mln) due to a decrease in volumetric sales reported at ~61,993 MTs (FY24: ~62,861MTs), a decline of ~1.3% due to decrease in consumption of POL products. PMG stood as the main contributor (~91%) in sales, followed by HSD (~8%). PMG witnessed an increase of ~7.3% while HSD declined by ~42% due to a shift in the Company’s focus from selling HSD products. Revenues are expected to increase, going forward.

During FY25, the gross margin improved to ~4.7% (FY24: ~4.4%) owing to the Company's ability to procure POL products at cheaper prices. The operating margin had a trickle-down effect and showed improvement to ~3.9% (FY24: ~3.5%). On net level, margins remained low at ~0.5% (FY24: ~0.3%) due to decrease in finance cost. Going forward, the Company would need to maintain vigilance considering the trajectory of POL procurement costs, the imposition of carbon levy, and the expected increase in OMC margin.

The Company is planning to increase storage capacity at Sahiwal and Faisalabad. Currently, My Petroleum is operating all over the Punjab and has recently started operations in Sindh. Additionally, the Company is planning the expansion of the Mirpur Khas storage facility.

As of FY25, the Company’s net working capital days increased to ~25 days (FY24: ~20 days), primarily on account of higher inventory days (FY25: ~36 days; FY24: ~34 days) amid lower sales. Trade receivable days remained stable at ~13 days in FY25 (FY24: ~12 days) in line with the Company’s policy. Trade payable days declined slightly to ~24 days in FY25 (FY24: ~26 days), mainly reflecting lower procurement volumes due to reduced sales. Payables are largely settled through LCs, which are typically opened for a tenor of two months. The borrowing cushion on the Company’s balance sheet, however, remains stretched. Going forward, better working capital management and a stable borrowing cushion will be the key to sustaining volumes and market share.

During FY25, despite increased profit before tax, the Company's EBITDA decreased to ~PKR 879mln (FY24: ~PKR 892mln) due to redu tion in other non cash items. The finance cost decreased to ~PKR 607mln (FY24: ~PKR 668mln) due to redcution in interest rates during FY25 and also due to reduction in short term and long term borrowings, hence improving the EBITDA/ Finance cost cover to ~1.4x (FY24: ~1.3x). Coverages are expected to remain stretched. 

As of FY25, total borrowings of the Company were reported at ~PKR 1,049mln (FY24: ~PKR 2,698mln), a decrease in total borrowings by ~61% owing to a decrease in short term borrowings.  Long term borrowings were paid off during the year. Moreover, the equity of the Company stood at ~PKR 3,099mln (FY24: PKR 1,795) mainly due to equity injection of PKR1.2bln and share capital was reported at ~PKR 2,276mln (FY24: ~PKR 1,076mln), hence leading to an improved leverage ratio of ~38.6% (FY24: ~66.7%). Leverage is expected to remain stable going forward.