The Pakistan Credit Rating Agency Limited
29-Dec-22
Analyst
Muhammad Noor Ul Haq
noorulhaq@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Corporate Rating | Jun-22
- Methodology | Debt Instrument Rating | Jun-22
- Methodology | Rating Modifiers | Jun-22
Related Research
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PACRA Withdraws Rating of OILCO Petroleum (Pvt.) Limited - PP Sukuk | TBI of PKR 500mln
| Rating Type | Debt Instrument | |
|
Current (29-Dec-22 ) |
Previous (29-Dec-21 ) |
|
| Action | Withdraw | Preliminary |
| Long Term | - | A+ |
| Short Term | - | - |
| Outlook | Stable | |
| Rating Watch | - | - |
The management of OILCO Petroleum (Pvt.) Limited has decided not to issue PP Sukuk | TBI of PKR 500mln.
Subsequent to the management's decision to discontinue the ratings, PACRA withdraws the rating of PP Sukuk | TBI of PKR 500mln with immediate effect.
About
the Entity
OILCO Petroleum (Pvt.) Limited (OILCO) incorporated in 2013, was granted license to establish as Oil Marketing Company in 2017. OILCO started its operation in Punjab region. With a network of ~ 67 retail outlets (end-Jun22), OILCO has a storage infrastructure of ~ 28,000MTs. The Company is a subsidiary of SEARS Energy DMCC, which holds 97.0% shares, 2.0% is being held by Mr. Zaheer Ahmed Ghanghro while 1.0% of the stake is spread among individuals. SEARS Energy is a joint venture by the Halmore Group and Mr. Ahsan Majeed with a 66.6% and 33.3% stake, respectively.
The control of the Company vests with a seven-member Board of Directors (BoD) including the CEO. Two directors are representatives of SEARS Energy, whereas the remaining five directors are non-executive directors. All of the board members are experienced professionals with diversified backgrounds. The CEO is supported by an able and competent team.