Gas & Oil Pakistan Limited ('GO' or 'the Company') was incorporated as an unlisted public limited company in 2012 under the erstwhile Companies Ordinance, 1984 (now called the Companies Act, 2017). The Company acquired an OMC license in 2014 and commenced operations in Punjab in 2015, with subsequent expansions in Sindh, Khyber Pakhtunkhwa (KPK), Gilgit Baltistan (GB), and Balochistan. The Company began its operations by providing logistics services to other oil marketing companies. It steadily built a strong logistics network that has evolved into a vital service provider for major Oil Marketing Companies (OMCs). The Company is primarily engaged in marketing and selling petroleum products (POL). Currently, the Company operates the second largest retail network of ~1,329 stations, including ~80 company-operated company-owned (COCO) sites. To support the constantly growing retail network, the Company maintains numerous storage sites located throughout Pakistan. These sites hold a total storage footprint of ~87.5K MT for HSD and ~81.4K MT for PMG, including a dedicated storage facility at Fauji Trans Terminal Limited, with a capacity of ~36.3K MT. This enables the Company to effectively and efficiently capture its widespread customers. The Company's profile has been uplifted by the induction of Aramco.

The Company's shareholding was initially divided among Mr. Khalid Riaz and his family and friends. However, lately, Aramco has acquired an ~40% stake in the Company. While GO holds a major stake of ~60%, out of which, Mr. Khalid holds ~51% stake in the Company. As Aramco, headquartered in Saudi Arabia with an operational history of more than 90 years, holds a considerable equity stake in the Company, the ownership is expected to remain stable. The Company's sponsors have extensive industry experience with a significant concentration in oil & lubricant trading and distribution & transportation to OMCs all across Pakistan. Mr. Khalid, the Company's key sponsor and CEO, possesses over three decades of extensive oil distribution and trading experience. Furthermore, with the introduction of Aramco as a key sponsor and its representation on Board and its strategic management, the Company will, over time, benefit from the vast expertise of the new sponsor, improving the operational capabilities. The sponsors have a firm financial footing. Aramco (rated A+ by Fitch) has a strong financial muscle with an annual turnover of ~$ 480.5bln and total assets of ~$646.3bln, providing a comfortable financial strength to the Company.

The Board of Directors (BoD) comprises ten members, out of which four Directors are the representatives of Aramco. There are two Independent Director on the BoD. Overall composition of the BoD ensures diverse experience and knowledge, along with the requisite independence in the decision-making process. The Chairman of the BoD, Mr. Shahid Mehmmod Khan, has 30+ years of multifaceted experience in the domestic and international corporate sectors. Mr. Nader D. Al Douhan is the Director of DS International Retail at Aramco, and holds over 25 years of experience in downstream, upstream, and corporate services. Other representative Directors of Aramco, Mr. Abdul Aziz, Mr. Usman Hamid and Mr. Davide Crespi also carry diversified experience of more than two decades. The induction of the Directors representing Aramco has strengthen the BoDs strategic oversight and policy formation process. The BoD meets on a quarterly basis with complete attendance and comprehensive documentation of minutes. Two BoD Committees, namely the Board Audit Committee (BAC) and Board HR and Compensation Committee (BHRCC), monitors the operations effectively. These Committees meet on a quarterly basis with adequate attendance. Minutes of the Committee meetings are recorded and documented adequately. The External Auditors of the Company, M/s. PKF FRANTS has expressed an unqualified opinion on the financial statements for the period ended Dec-25. The firm is QCR-rated and listed on the SBP panel.

The Company's operations are divided into three primary functional areas: i) Operations, ii) Finance, and iii) Sales. Each department is managed by a department head who reports directly to the CEO. He then reports to the Board, that makes pertinent decisions. While, the Head of Internal Audit & HR functionally reports to the respective Board Committees, and administratively to the CEO. Mr. Khalid Riaz, the Company's CEO, has been associated with GO for more than a decade. He has an overall experience of over three decades. Lately, Mr. Zahid Zuberi has joined as the Company's CFO, with an overall professional experience of ~3 decades. Mr. Zahid's appointment has been done in consensus with Aramco. Overall, the average experience of the senior management is of around three decades, reflecting a good management profile. The management team comprises seasoned professionals, each bringing a range of expertise in their respective fields. GO has constituted two management committees, including i) Procurement and ii) Credit. These Committees meet on a quarterly basis, and the minutes of these meetings are recorded and documented adequately. Anticipating the need for enhanced management efficacy, as Aramco joins in, management-level committees may add-in. The senior management receives a daily performance report on operations for optimal monitoring. The Company’s operating environment has now been upgraded to SAP S/4HANA. This has effectively integrated with all the departments and ensures proper financial and operational controls. The Company operates an in-house internal audit department to oversee risk management, control, and governance processes. Furthermore, the quarterly are also reviewed by the external auditor This ultimately enhances business practices by establishing standard operating procedures (SOPs).

Pakistan's OMC sector delivered a meaningful demand recovery in CY25, reversing two consecutive years of contraction. FY25 OMC volumes reached 16.3 million tons, up ~7% YoY. By end-CY25, gasoline, gasoil, and hi-octane sales collectively rose ~10% YoY to approximately 15.4 MMTs, supported by vehicle growth and stable underlying demand. However, volume recovery has masked deepening structural stress. Regulated pricing, persistent discounting, and rising capital requirements continue to strain sector economics, despite solid topline growth. OMC margins remain fixed in nominal terms, while working capital pressures — exacerbated by IDC and sales tax uncertainties — continue to erode real returns. The sector's import dependency was vividly stress-tested by the US-Iran conflict that escalated in early 2026. Pakistan imported nearly two-thirds of its total LNG via the Strait of Hormuz in 2025, making it acutely vulnerable to supply disruptions. As the crisis deepened, fuel shortages emerged across Asian markets, including Pakistan, exposing the sector's thin inventory buffers and absence of strategic reserves. With ~20% of global oil trade transiting the Strait, any prolonged closure structurally threatens Pakistan's import-dependent POL supply chain. The Company captured ~13% market share based on the sale of POL products and is positioned at 2nd among OMCs as of Dec-24. GO is the second biggest OMC in terms of retail networks operating across Pakistan. GO Petroleum's revenue base expanded significantly in CY25, with net revenue growing ~89% YoY to PKR 619.7bln (CY24: PKR 327.8bln). The growth was predominantly volume-driven, reflecting the Company's aggressive market share capture in an otherwise margin-compressed sector. Revenue is diversified across HSD (~50%) and MS (~49%), with HOBC contributing a marginal ~1% — a mix that closely mirrors Pakistan's broader white oil demand structure and leaves the Company exposed to any structural shift in transport fuel consumption patterns. Despite robust topline growth, margin compression across all levels warrants attention. Gross margins contracted to ~3.5% (CY24: ~5.4%), indicative of elevated procurement costs that the Company was unable to fully pass through under the regulated pricing regime. Operating margins similarly declined to ~2.1% (CY24: ~3.6%), reflecting a disproportionate increase in selling and marketing expenses — suggesting the volume growth came at a meaningful cost to operating efficiency. Net margins thinned further to ~0.8% (CY24: ~1.0%), though absolute net income grew ~39% YoY to PKR 4.6bln (CY24: PKR 3.6bln), underscoring that scale is currently compensating for structural margin erosion. The Aramco partnership represents the most consequential strategic development for the Company. Beyond brand equity, the alliance has tangibly strengthened GO's supply chain infrastructure and reinforced its balance sheet — critical advantages in a sector where working capital management and procurement reliability are primary competitive differentiators. Aramco's integrated positioning across upstream, midstream, and downstream segments offers GO a structurally superior supply arrangement relative to peers. Looking ahead, the volume growth trajectory appears credible, supported by the Company's distribution expansion and Aramco's commercial backing. However, margin recovery will be the key monitorable — sustained improvement in profitability will depend on procurement cost normalization, disciplined management of operating expenses, and any regulatory revision to OMC margins.

The Company's financial risk is gauged through its working capital management, the Company's ability to build a suitable interest cover, and its capital structure. GO has worked on its working capital management as reflected by an improved net working cycle to ~13 days in CY25 (CY24: ~20 days). This improvement primarily stems from a notable decline in trade receivables days from ~35 days in CY24 to ~26 days in CY25, highlighting improved credit terms for product import provided by Aramco The inventory turnover days increased to ~38 days (CY24: ~36 days), it was primarily due to a significant increase in the Company's inventory levels (CY25: ~PKR 78.5bln, CY24: ~PKR 49.1bln) to support its enhanced operations.  The Company’s trade debts, mainly constituting government entities, corporate customers, and dealers stood at ~PKR 53.4bln (CY24: ~PKR 36.4bln), a growth of ~46.7%, is substantially slower than the annualized revenue growth, reflecting prudent working capital discipline, and is further supported by the implementation of a Board-approved credit policy aimed at maintaining tighter control over receivable cycles going forward. As of CY25, the Company reported FCFO at ~PKR 11.6bln, reflecting a decline of ~11.7% (CY24: PKR ~13.2bln). The Company’s interest coverage Ratio improved to ~1.9x in CY25 (CY24: ~1.7x), attributed to declining finance costs amounted to ~PKR 7.5bln (CY24: ~PKR 8.2bln). The Company reported a significant change in its leverage. As of CY25, the leverage ratio of the Company declined to ~56.5% (CY24: ~49.5%). The Company's total equity rose to ~PKR 38.6bln for CY25 compared to ~PKR 32.4bln for CY24. Likewise, the Company’s borrowing book inclined to ~PKR 50.1bln in CY25 (CY24: ~PKR 31.7bln); majorly concentrated with STBs ~PKR 38.1bln in CY25 (CY24: ~PKR 24.1bln) for working capital management. Capital adequacy of the Company is expected to remain strong, going forward

Gas & Oil Pakistan Limited ('GO' or 'the Company') issued a secured, Shariah-compliant Long-Term Sukuk of PKR 2.5 billion in Dec-25 with a tenor of five years. The Sukuk carries a profit rate of 3MK + 1%, with the proceeds earmarked to finance the expansion of the Company's Company-Owned Company-Operated (COCO) retail fuel station network. The instrument is secured by the Company's existing COCO sites, valued at ~PKR 3,483 million. Principal repayments will commence from the fifteenth month after the issuance date and will be amortized through equal quarterly instalments over the remaining tenor.

The instrument is secured by a first-ranking charge over the existing COCO sites to cover the amount plus margin. The valuation of the existing COCO sites, placed as security, amounts to ~PKR 3,483mln. The valuation breakup of GO sites and Aramco rebranded sites is given in the table below:

There are no additional credit enhancement features associated with the instrument; accordingly, the instrument's rating is aligned with the credit rating of the issuer. The issuer maintains a strong cash flow generation capacity, which is expected to provide adequate coverage for the timely servicing of the principal and profit obligations. As per the management's projections, the proceeds of the instrument will be utilized to expand the Company's network of Company-Owned Company-Operated (COCO) retail outlets, thereby strengthening its retail footprint and supporting incremental revenue generation. The increased proportion of COCO sites is also expected to enhance the Company's profitability and cash flow generation, as these outlets enable the Company to retain both the dealer and OMC margins, resulting in comparatively higher per-site margins.