The Pakistan Credit Rating Agency Limited
Press Release


Behrooz Fareed

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PACRA assigns initial Entity Ratings to TOTAL PARCO Pakistan Limited.

Rating Type Entity
(23-Dec-22 )
Action Initial
Long Term AAA
Short Term A1+
Outlook Stable
Rating Watch -

Total PARCO Pakistan Limited (TPPL) has been assigned AAA rating by PACRA. The rating reflects the Company’s position as the largest international oil marketing company (OMC) in Pakistan, and also takes into account the company’s plans to grow its business in key focus areas. Being the 2nd largest and one of the most advanced OMCs in the country, TPPL holds significant strategic importance in the domestic energy sector. This also provides TPPL with a strong base to work closely with regulators for improving the overall structural landscape of the downstream oil marketing sector. The Company’s strategy is well thought out and robust, which position it to grow sustainably in the future.
TPPL enjoys a sustainable supply position with credible and supportive sponsors. As a consequence, its marketing and supply operations generate fairly stable cash flows, despite the volatility in international market prices volatility and other persistent risks. Maneuvering its strategy around concept of ‘Service Station’ rather than ‘Petrol Pump”, TPPL is aiming to build & retain its customer base by developing brand loyalty that goes beyond transactional. In order to remain aligned with contemporary world’s energy needs, the company has a clear view on the global energy transition.
The rating also remained cognizant to strategic initiatives of TPPL, which, inter alia include construction of new storage sites, expansion in production capacity of lubricants plant, sustainable development goals and initiatives towards its corporate social responsibilities. The company's sound governance framework and control environment augurs well for smooth & compliant business operations. Deployed IT infrastructure at group level is considered robust, mitigating any business interruption risk.

About the Entity
TPPL is an unlisted public limited company. Principal activity of the Company is marketing and sale of petroleum products. TPPL has a six-member Board. Three members represent PARCO and other three are nominee of TMS. To enhance transparency in practices of board, Chairman is nominated by PARCO while, CEO of the Company is appointed by TMS. CEO of the Company, Mr. Mehmat Celepoglu enjoys expertise of over 25 years in oil marketing, supply and trading within one of the largest energy groups in the world. Other members of the management, as well, are seasoned professionals carrying average experience of ~2 decades.

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.