Aslam Energy (Pvt.) Limited (‘AEPL’ or ‘the Company’) was incorporated on July 9, 2018, under the Companies Act, 2017 as a private limited company.

The Company traces its origins to the early 1980s, when it commenced operations as “Aslam Oil Traders,” a sole proprietorship founded by the late Rana Muhammad Aslam. Initially focused on logistics and serving cottage industries, the business gradually expanded to cater to large-scale industrial clients across Pakistan. Over time, the younger generation assumed control, and the business was formally incorporated in 2018 as Aslam Energy (Pvt.) Limited.

The Company is primarily engaged in the distribution of petroleum (PoL) products and also provides logistics (carriage) services to various OMCs. It operates a fleet of approximately 36 vehicles (including those held through sister concerns) and manages around 44 filling stations as of June 2024. Additionally, the Company offers hospitality services to OMCs. Its product portfolio includes High-Speed Diesel (HSD), Motor Spirit (MS/Petrol), Furnace Oil, Kerosene, Lubricants, LPG, and Coal, serving a diversified industrial client base including textiles, leather, ghee, sugar, cement, power generation, and logistics sectors.

The Company’s ownership is concentrated among three brothers: Mr. M. Waris (~34%), Mr. M. Asif (~33%), and Mr. M. Arif (~33%).

Ownership rests with three active directors who are members of the founding family, ensuring governance continuity and aligned strategic interests. The ownership structure has remained unchanged since the Company’s incorporation, reflecting strong stability.

Aslam Energy is led by experienced professionals from Pakistan’s oil sector, reflecting strong industry expertise and business acumen. This leadership provides the Company with deep operational experience and sector-specific knowledge, supported by the Group’s broader commercial acumen developed over more than three decades of operations.

The Company benefits from a well-established group structure comprising entities engaged across the petroleum value chain, including oil marketing, refining, distribution, and trading. Key affiliated and group companies include Flow Petroleum (Pvt.) Ltd. (OMC – sister concern), Quality 1 Petroleum (Pvt.) Ltd. (distribution), Flow DMC (distribution and marketing), TRL (TransAsia Refinery Ltd.), and Aslam Sons & Co. (trading). This integrated presence across upstream and downstream segments enhances operational synergies, supports supply chain stability, and strengthens the Group’s overall financial resilience.

The Board of Directors is composed entirely of the sponsoring family members, namely Mr. M. Waris, Mr. M. Arif, and Mr. M. Asif, reflecting strong sponsor involvement in strategic oversight and decision-making. While the current structure does not include independent or non-executive directors, it provides an opportunity to further strengthen governance practices through enhanced board diversity and independent oversight.

The Board of Directors comprises members with extensive experience in the oil sector, providing strong industry insight and strategic oversight. Mr. M. Waris serves as Chairman of the Board and brings over two decades years of relevant experience. The other Board members also possess significant exposure to the oil marketing industry, collectively strengthening the Company’s governance and sector expertise.

The Board of Directors is supported by four sub-committees, namely Audit, Finance, Budgeting, and HR. These committees meet on a regular basis, contributing to structured oversight, effective governance, and timely decision-making across key functional areas.

The Company’s External Auditors, M/s PKF FRANTS, are QCR-rated and classified in Category ‘B’ on the SBP panel of auditors. The audit for FY25 is currently pending, subject to the resolution of certain matters, which remains important for ensuring transparency and timely finalization of the financial statements.

The Company operates through key functional departments, including Operations & Logistics, Treasury & Finance, HR & Administration, Sales, Accounts & Taxation, Internal Audit, and Safety & Surveillance. Each function is headed by a designated manager who reports to the Chief Operating Officer (COO). The COO, in turn, reports to the Chief Executive Officer (CEO), who is responsible for overall executive oversight and decision-making and reports to the Board of Directors. The structure reflects clearly defined and demarcated responsibilities across functions, with the CEO playing a central role in operational execution and coordination across the organization.

Mr. M. Arif, the Chief Executive Officer, brings over 12 years of experience in the retail and oil transportation sector. He has been associated with the business since its inception, contributing to its development and operational growth. He is supported by a team of skilled professionals, while the Group management team also provides additional support to the Company’s operations and offers strategic insight, further strengthening overall execution capacity and decision-making.

The Company does not have any formal management committees in place. However, management meetings are held as and when required, contributing to the overall decision-making process. The Company is directly overseen by the Board of Directors, which provides strategic direction and guidance to the management.

The Company has implemented an ERP system that is integrated across all business functions, enabling seamless data flow and operational efficiency. The system is considered adequate for the size and nature of operations, and also facilitates the timely generation of management reports, thereby supporting informed decision-making and effective monitoring.

The Company maintains an in-house internal audit function that strengthens risk management, internal controls, and governance processes. It also contributes to the improvement of business practices through the development and enforcement of standard operating procedures (SOPs), thereby supporting operational discipline and efficiency.

Pakistan’s Oil Marketing Company (OMC) sector is a key component of the country’s energy supply chain, responsible for the procurement, storage, and distribution of Petroleum, Oil and Lubricant (POL) products to industrial, commercial, transport, and retail consumers. The sector is regulated by the Oil & Gas Regulatory Authority (OGRA) and operates under a price-controlled regime for key products such as High Speed Diesel (HSD) and Motor Spirit (MS), where OMC margins are fixed by the Government. As of FY25, the market comprises approximately 44 licensed OMCs; however, it remains highly concentrated, with the top three players accounting for around 60% of total volumes, while the top ten and top twenty control approximately 95%. This structure leaves smaller and emerging players, including AEPL, to compete primarily on service quality, customer relationships, and logistics efficiency rather than pricing, given the regulated margin environment. The sector continues to reflect stable demand growth in HSD and MS, offset by a structural decline in Furnace Oil due to the power sector’s transition to alternative fuels. Overall, while the industry faces challenges from thin regulated margins, macroeconomic volatility, and energy transition risks, it also presents opportunities in the industrial B2B segment, where logistics capability and established relationships remain key competitive drivers.

The Company maintains a decent market share in Motor Spirit (PMG) and High Speed Diesel (HSD) within the Punjab region, reflecting a stable and established presence in the distribution and sale of petroleum products. Sales of POL products, though concentrated in a single segment, constitute the major portion of revenue. However, income from the distribution segment, along with retail income from hospitality arrangements, provides a competitive edge and contributes to a more diversified revenue stream, thereby enhancing overall business resilience and stability.

The Company’s revenue base is primarily driven by High Speed Diesel (HSD) and Motor Spirit (MS/Petrol), which together contribute around 98.5% of total turnover, broadly aligned with national consumption patterns and AEPL’s positioning in bulk fuel distribution. FY24 reported a topline of PKR 48.31 billion, while FY25 moderated to PKR 35.77 billion, reflecting normalization in volumes and operating activity. The product mix remained stable, with HSD contributing PKR 21.15 billion and MS PKR 14.09 billion, while Furnace Oil and lubricants remained marginal. The carriage and logistics segment added approximately PKR 388 million, providing a modest diversification in revenue streams. For the six-month period ended December 31, 2025 (management accounts), the Company recorded turnover of PKR 32.18 billion, which translates into a significantly higher annualized run-rate compared to FY25, indicating strong momentum in current operations. During the period, MS contributed relatively higher compared to HSD, suggesting a mild shift in demand mix, while overall volumes remained stable.

Margins remain relatively low compared to other OMCs, primarily due to elevated operational expenses. However, the Company has shown some improvement in 6MFY25, with gradual recovery in profitability indicators. Gross margins stood at approximately 1.2% in FY24 and remained broadly stable in FY25, improving to around 2.3% in 6MFY25. Net profit margin remained modest at approximately 0.3% in FY24 (FY23: ~0.4%), improving to around 1.7% in 6MFY25, reflecting a positive but still developing margin profile.

Going forward, the Company plans to expand its retail outlet network across Pakistan, which is expected to support gradual organic growth by broadening its customer base and strengthening market reach. Additionally, the investment in TransAsia Refinery Limited (TRL) is expected to enhance operational efficiency by improving supply dynamics, thereby enabling more responsive pricing adjustments. However, management’s strategy with reference to TRL needs to further evolve to meaningfully improve the Company’s operational profile over time. The effective utilization of the existing distribution network and hospitality arrangements remains important in this regard, as these continue to represent key differentiators and support incremental revenue generation.

As of FY25 and 6MFY26, the Company’s net working capital cycle remained negative, improving to approximately (5) days (6MFY25: (3) days), reflecting efficient liquidity management supported by supplier credit. Trade receivable days remained stable at around 2 days, indicating strong collection discipline. Trade payable days stood at 7 days in FY25 (6MFY25: 5 days), reflecting reliance on short-term vendor credit. Overall, the working capital position is largely funded through supplier credit and related party support, while the available bank-funded lines are utilized to meet short-term funding requirements.

As of FY25, the Company’s interest coverage ratio moderated to approximately 4.5x (FY23: ~7.2x), however it remains adequate to comfortably meet short-term debt servicing requirements. The decline is primarily driven by a reduction in EBITDA alongside higher finance costs during the period. Consequently, lower profitability levels translated into reduced earnings absorption capacity, thereby impacting the interest coverage position.

The Company demonstrates an adequate capital structure, as reflected in its leverage profile. The debt-to-capital ratio stood at approximately 28.6% as of FY25 (6MFY26: ~45.8%), indicating a moderate reliance on external financing. Equity increased to around PKR 3,399 million in FY25 (6MFY26: ~PKR 3,942 million), supported by retained earnings and improved profitability during the interim period.