The Pakistan Credit Rating Agency Limited
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Muhammad Noor Ul Haq

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PACRA assigns initial Entity Ratings to Puma Energy Pakistan (Pvt.) Limited

Rating Type Entity
(26-Aug-22 )
Action Initial
Long Term A-
Short Term A2
Outlook Stable
Rating Watch -

The assigned ratings incorporate Puma Energy Pakistan (Pvt.) Limited’s established retail network and its strong operating efficiency. The key product portfolio of the Company comprises of HSD and PMG, with these being key revenue generators. The ratings factor strong financial strength of the sponsors as they have diversified portfolio with expertise in energy, medical and financial sectors. This has given them an understanding of the dynamics of the market and enabled them to establish relationships with suppliers and customers. Since acquisition of Admore Gas (Pvt.) Limited is now complete, the sponsors of Company intend to rebrand its significant retail network under the name of Puma. For this, the Company has entered into Trademark License Agreement (TMLA) with Puma Energy International S.A. for the branding of sites in Pakistan. In order to ensure reliable & secure supply of high-quality fuels and to fulfill the augmented working capital, going forward, the sponsors of Puma Energy further aim to join hands with a strategic partner. Besides this, it would provide much desirable control on the supply chain and also keep the pace of growth with the augmented capacity. Moreover, financial flexibility is high, driven by support from the sponsors in terms of equity injection coupe with non-funded bank limits. The management intends to keep the leverage indicators aligned to its risk profile. Capex in FY23, is likely to be met through internal accruals and majorly via strategic partner’s investment. The governance framework of the Company is flanked by a diversified and experienced board.
The rating captures the Company’s ability to sustain its business operations while achieving the aforementioned plans. The rollout of the planned business strategy and sustainable profitability is essential. The rating particularly recognizes ongoing developments including i) planned re-branding of retail sites ii) equity injection. In addition to timely implementation of these initiatives, the ratings are dependent on Puma Energy's ability to achieve desired market penetration along supportive supply chain network. Sustainability of bottom-line and key financial metrics, in terms of working capital ratios, financial coverages and gearing, remain crucial to the rating.

About the Entity
Puma Energy Pakistan (Pvt.) Limited was founded in 2001 and registered as oil marketing company formerly known as Admore Gas (Pvt.) Ltd. under the Companies Ordinance 1984 (formally the Companies Act, 2017). In 2017, the Company changed its name from Admore Gas (Pvt.) Ltd. to Puma Energy Pakistan (Pvt.) Ltd.
Mr. Amir Waliuddin Chishti holds 99.99% shares. Puma Energy was previously, 51% directly owned by Puma Energy South Asia Holdings B.V. In 2021, Puma Energy South Asia Holdings B.V. transferred all shares to Mr. Amir Waliuddin Chishti. The Company has a four-member Board of Directors (BoD). All board members are non-executive directors except the Chief Executive Officer.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.