My Petroleum (Pvt.) Limited

RATING REPORT | Sep-26

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Rating History
Dissemination Date Long-Term Rating Short-Term Rating Outlook Action Rating Watch
11-Sep-26 BBB+ A2 Stable Maintain -
11-Sep-25 BBB+ A2 Stable Maintain -
27-Sep-24 BBB+ A2 Stable Maintain -
27-Sep-23 BBB+ A2 Stable Maintain -
27-Sep-22 BBB+ A2 Stable Initial -
About the Entity

My Petroleum (Pvt.) Limited was incorporated in January 2016 and became commercially operational in September 2019. The Company is engaged in the procurement, import, storage, distribution, and marketing of POL products and lubricants. It operates all over Punjab and some areas of Sindh with a total storage capacity of ~7,000 MT, located at Habibabad and Mirpurkhas. My Petroleum is a family-owned business with a major stake held by Mr. Tariq Wazir Ali (~95.3%) and his wife (~4.6%). The Company has a family-dominated Board, chaired by Mr. Tariq Wazir Ali. He is also the CEO of the Company and is aided by experienced professionals.

Rating Rationale

My Petroleum (Pvt.) Limited ("My Petroleum" or "the Company") maintains its position as an emerging player in Pakistan's competitive oil marketing sector, supported by experienced sponsors and a diversified business group. The Company operates a retail network of 80 dealer-based outlets across Punjab and Sindh. During FY25, its storage capacity was expanded from 5,500 MT to approximately 7,000 MT, with further expansion planned. To support this growth trajectory, the Company is also exploring the induction of a joint venture (JV) partner, which could bring in capital and technical expertise. During FY26, Pakistan's oil marketing industry witnessed total petroleum product sales of ~16.2 million MT, broadly flat YoY. My Petroleum's net sales declined by 25.9% to ~PKR 15,756 million (FY25: PKR 21,067 million) due to lower volumetric sales. Margins came under pressure, with gross margin declining to 3.9% (FY25: 4.9%) and net margin remaining low at 0.5% (FY25: 0.6%). As the Company relies heavily on imports, it remains exposed to exchange rate risk, which has negatively impacted profitability. The financial risk profile remains adequate. The working capital cycle elongated to ~44 days in FY26 (FY25: ~25 days) due to higher inventory days. However, the current ratio remained stable at ~4.7x (FY25: ~2.5x), indicating adequate short-term liquidity. Coverage ratios showed a slight improvement, with EBITDA/Finance Cost standing at ~1.9x (FY25: ~1.7x), reflecting lower financing costs. During FY25, the capitalization profile strengthened by PKR 1,200 million. Consequently, shareholders' equity stood at PKR 3,177 million as of FY26 (FY25: PKR 3,110 million), and the leverage ratio improved substantially to 40.9% (FY25: 38.6%; FY24: 66.7%). While the balance sheet holds a weak borrowing cushion, adequate financial flexibility, demonstrated through sponsor support as a subordinated loan, bodes well for the Company.

Key Rating Drivers

The ratings remain sensitive to the competitive and regulated nature of Pakistan's oil marketing sector, which is exposed to global oil price fluctuations, exchange rate movements, and regulatory changes. The ratings will also depend on the Company's ability to successfully execute its expansion plans, sustain margin improvements, and grow sales volumes. Strengthening governance through independent oversight on the Board also remains imperative

REPORT CONTENTS
  1. Rating Analysis
  2. Financial Summary
  3. Rating Scale
  4. Regulatory Disclosure

My Petroleum (Pvt.) Limited


Rating Analysis

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Profile
Legal Structure

My Petroleum (Pvt.) Limited ("My Petroleum" or "the Company") was incorporated on January 16, 2016, as a private limited company under the repealed Companies Ordinance, 1984 (now the Companies Act, 2017).


Background

Mr. Tariq Wazir Ali, the founder of the Company, entered the business arena through POL products trading. He later formalized his trading operations under My Trading (Pvt.) Ltd. Over time, he established My Logistics (Pvt.) Ltd. with the sole purpose of POL product transportation. In January 2016, My Group ("the Group") was formally registered, and My Petroleum was set up within the downstream POL supply chain. The Company commenced commercial operations in September 2019 after acquiring its OMC license in December 2016. The Group also holds interests in the steel sector, having established a bars and billets manufacturing facility. More recently, the Group has entered the mining and minerals segment through the registration of My Mining and Minerals (Pvt.) Ltd. Every expansion and/or acquisition is primarily backed by equity.


Operations

The Company is primarily engaged in the storage, distribution, and marketing of petroleum products and lubricants. It imports refined oil and also procures from local refineries. My Petroleum operates through a network of 80 dealer-based retail outlets across Punjab and Sindh. The Company has a total storage capacity of approximately 7,000 MT, with storage facilities located at Habibabad and Mirpurkhas.


Ownership
Ownership Structure

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


Stability

The Company's family-owned structure and stable leadership provide comfort to the overall ownership profile.



Business Acumen

The sponsors possess over two decades of experience in managing 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. More recently, the sponsors have established My Mining and Minerals (Pvt.) Ltd.


Financial Strength

The financial strength of the sponsors is considered strong and sufficient to support the Company, if needed.



Governance
Board Structure

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


Members’ Profile

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


Board Effectiveness

Formal policies and procedures are devised by the CEO/Chairman. The Board is assisted by the Audit and Risk Committees. Board and committee meetings are held quarterly, with considerable attendance and adequately maintained minutes.



Financial Transparency

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 FY25. The Company has finalized draft management accounts as of FY26, which are to undergo an audit process.



Management
Organizational Structure

The Company operates through fifteen departments, each headed by independent Heads. The technical, sales, and administration department heads report directly to the COO. All other departmental Heads report to the Executive Director (ED) or the CFO. The COO, ED, and CFO then report to the CEO. The CEO is the final decision-making authority and makes all pertinent decisions.


Management Team

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


Effectiveness

The Company has formulated two management-level committees: the Risk Management Committee and the Technical Committee. These committees meet quarterly and have adequately documented minutes. Additionally, all Heads of Departments meet daily to discuss pertinent matters.


MIS

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.


Control Environment

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


Business Risk
Industry Dynamics

Pakistan's oil marketing industry continues to rely significantly on imports to meet energy demand, with total petroleum product sales of approximately 16.2 million MT during FY26, broadly flat versus approximately 16.3 million MT in FY25. Elevated retail fuel prices, a higher Petroleum Development Levy, and subdued economic activity weighed on consumption, particularly in 4QFY26 amid Middle East tensions. Motor Spirit (MS) rose approximately 1% to approximately 7.68 million MT, High-Speed Diesel (HSD) remained nearly flat at approximately 6.85 million MT, and Furnace Oil (FO) continued its structural decline, falling approximately 26% to approximately 0.60 million MT, driven by the power sector's shift to LNG and renewable sources. The industry landscape comprises approximately 30 registered OMCs, of which five are listed: PSO, Shell Pakistan, Hascol Petroleum, Hi-Tech Lubricants, and Attock Petroleum. Maintaining stable liquidity requires vigilance given the persistent volatility in demand and pricing.


Relative Position

The top five OMC players hold approximately 79% market share in sales. Out of the remaining approximately 21% market share, My Petroleum holds approximately 0.4% of the share in POL sales. The Company generates revenue through sales of PMG, HSD, and Lubricants across its retail network.


Revenues

The Company generates revenue primarily through PMG (~91%) and HSD (~8%), while Lubricants (~1%) contribute the remainder. During FY26, net sales declined to approximately PKR 15,756 million (FY25: PKR 21,067 million), reflecting a 25.9% YoY decrease. This decline was mainly due to lower volumetric sales of approximately 60,767 MTs (FY25: approximately 61,993 MTs) despite higher average selling prices during the period. Going forward, revenue performance will remain sensitive to petroleum product volumes, retail fuel prices, and overall industry demand.


Margins

During FY26, the Company's gross profit margin declined to 3.9% (FY25: 4.9%), while the operating margin decreased to 2.6% (FY25: 4.1%). At the net level, the margin remained low at 0.5% (FY25: 0.6%), despite lower finance costs. The decline was mainly due to lower sales, and going forward, margins will remain sensitive to petroleum price movements, operating expenses, and finance costs.


Sustainability

The Company is planning to increase storage capacity at Sahiwal and Faisalabad. Currently, My Petroleum is operating all over Punjab. Additionally, the Company is exploring the induction of a foreign partner to support its growth trajectory, which could bring in capital and technical expertise.



Financial Risk
Working capital

The Company's net working capital cycle increased to approximately 44 days in FY26 (FY25: approximately 25 days), primarily due to higher inventory days of approximately 45 days (FY25: approximately 36 days) amid lower sales. Trade receivable days increased to approximately 17 days (FY25: approximately 13 days), while trade payable days declined to approximately 18 days (FY25: approximately 24 days) due to lower procurement volumes. Despite the elongation in the working capital cycle, the Company's current ratio remained stable at approximately 4.7x in FY26 (FY25: approximately 2.5x), indicating adequate short-term liquidity.


Coverages

During FY26, EBITDA stood at approximately PKR 597 million (FY25: approximately PKR 999 million), while finance cost declined to approximately PKR 238 million (FY25: approximately PKR 607 million), resulting in an EBITDA/Finance Cost cover of approximately 1.9x (FY25: approximately 1.7x). The improvement in coverage reflects lower financing costs during the period, despite the decline in operating profitability. Coverages are expected to remain stretched going forward.


Capitalization

As of FY26, total borrowings stood at approximately PKR 1,300 million (FY25: approximately PKR 1,049 million), while shareholders' equity increased to approximately PKR 1,977 million (FY25: approximately PKR 1,910 million). Consequently, the leverage ratio stood at approximately 63.2% (FY25: approximately 62.3%). The slight increase in leverage was mainly due to higher short-term borrowings to fund working capital requirements. The capitalization profile is expected to remain stable going forward, supported by retained profitability.
 
 

Sep-26

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My Petroleum (Pvt.) Limited


Financial Summary

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(PKR mln)


 Jun-26
12M		 Jun-25
12M		 Jun-24
12M
A. BALANCE SHEET
1. Non-Current Assets 1,916 1,922 1,971
2. Investments 0 0 0
3. Related Party Exposure 0 0 0
4. Current Assets 4,447 5,278 5,376
a. Inventories 1,873 1,881 2,206
b. Trade Receivables 666 725 748
5. Total Assets 6,363 7,200 7,348
6. Current Liabilities 948 2,103 1,929
a. Trade Payables 147 1,352 1,365
7. Borrowings 1,300 1,049 2,698
8. Related Party Exposure 902 902 902
9. Non-Current Liabilities 36 36 24
10. Net Assets 3,177 3,110 1,795
11. Shareholders' Equity 3,177 3,110 1,795
B. INCOME STATEMENT
1. Sales 15,241 20,556 22,840
a. Cost of Good Sold (14,644) (19,557) (21,846)
2. Gross Profit 597 999 995
a. Operating Expenses (195) (164) (196)
3. Operating Profit 402 835 799
a. Non Operating Income or (Expense) (9) 12 19
4. Profit or (Loss) before Interest and Tax 393 847 818
a. Total Finance Cost (238) (616) (678)
b. Taxation (76) (117) (71)
6. Net Income Or (Loss) 79 115 69
C. CASH FLOW STATEMENT
a. Free Cash Flows from Operations (FCFO) 373 839 800
b. Net Cash from Operating Activities before Working Capital Changes 136 232 132
c. Changes in Working Capital (50) 222 (413)
1. Net Cash provided by Operating Activities 85 453 (281)
2. Net Cash (Used in) or Available From Investing Activities (43) (1) (26)
3. Net Cash (Used in) or Available From Financing Activities (15) (448) 270
4. Net Cash generated or (Used) during the period 28 5 (37)
D. RATIO ANALYSIS
1. Performance
a. Sales Growth (for the period) -25.9% -10.0% -1.3%
b. Gross Profit Margin 3.9% 4.9% 4.4%
c. Net Profit Margin 0.5% 0.6% 0.3%
d. Cash Conversion Efficiency (FCFO adjusted for Working Capital/Sales) 2.1% 5.2% 1.7%
e. Return on Equity [ Net Profit Margin * Asset Turnover * (Total Assets/Shareholders' Equity )] 2.5% 4.7% 4.3%
2. Working Capital Management
a. Gross Working Capital (Average Days) 62 49 46
b. Net Working Capital (Average Days) 44 25 20
c. Current Ratio (Current Assets / Current Liabilities) 4.7 2.5 2.8
3. Coverages
a. EBITDA / Finance Cost 1.9 1.7 1.4
b. FCFO / Finance Cost+CMLTB+Excess STB 1.6 1.5 1.2
c. Debt Payback (Total Borrowings+Excess STB) / (FCFO-Finance Cost) 6.6 3.1 5.2
4. Capital Structure
a. Total Borrowings / (Total Borrowings+Shareholders' Equity) 40.9% 38.6% 66.7%
b. Interest or Markup Payable (Days) 110.9 64.2 93.4
c. Entity Average Borrowing Rate 11.4% 16.9% 19.9%

Sep-26

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My Petroleum (Pvt.) Limited


Rating Scale

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Sep-26

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My Petroleum (Pvt.) Limited


regulatory disclosure

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  1. Rating Team Statements
    1. Rating is just an opinion about the creditworthiness of the entity and does not constitute a recommendation to buy, hold, or sell any security of the entity rated or to buy, hold, or sell the security rated, as the case may be. (Chapter III; 14-3-(x))
    2. Conflict of Interest
      1. The Rating Team or any of their family members have no interest in this rating (Chapter III; 12-2-(j))
      2. PACRA, the analysts involved in the rating process, and members of its rating committee and their family members do not have any conflict of interest relating to the rating done by them (Chapter III; 12-2-(e) & (k))
      3. The analyst is not a substantial shareholder of the customer being rated by PACRA [Annexure F; d-(ii)]
      4. Explanation: for the purpose of the above clause, the term "family members" shall include only those family members who are dependent on the analyst and members of the rating committee.
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  3. Conduct of Business
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