PACRA Maintains the Entity Ratings of Aslam Energy (Pvt.) Limited

Aslam Energy (Pvt.) Limited (“Aslam Energy” or “the Company”) holds ratings that reflect its affiliation with Flow Petroleum (Pvt.) Limited, supported by a robust business profile. The ratings also incorporate the sponsors’ extensive industry experience. The Company operates across two core segments: Trading and Distribution of POL (Petroleum, Oil, and Lubricants) products, and Fleet Logistics Services catering to various Oil Marketing Companies (OMCs). The trading segment is divided into retail and bulk sales. On the retail side, Aslam Energy sells POL products via cash and fuel cards through a network of approximately 44 retail outlets, primarily concentrated in the Punjab region. On the bulk side, it supplies POL products directly to corporate clients on credit terms. To support its logistics operations, the Company owns a fleet of 30 lorries and leases an additional 6 vehicles. The fleet primarily services group companies, including Flow Petroleum and Quality 1, generating modest revenue from carriage services. Going forward, the Company is also eyeing considerable hospitality income from its storage facilities. Revenue remains on an upward trajectory, with ~98% derived from the trading and distribution segment, and the remaining ~2% from logistics operations. In FY24, the Company reported a ~5.9% increase in revenues. However, overall margins came under pressure due to elevated procurement costs and inflation-driven increases in operational expenses. As part of its forward-looking strategy, Aslam Energy has acquired a ~65% equity stake in TransAsia Refinery Limited (TRL), with the remainder held by sponsors and affiliates, including Flow Petroleum. Once operational, this investment is expected to significantly enhance the Company’s supply chain and operational capabilities. Nevertheless, timely execution of the transaction remains critical, as several regulatory approvals are still pending. From a financial risk perspective, Aslam Energy maintains a sound risk profile, supported by adequate coverage ratios, a stable working capital cycle, and a low-leverage capital structure, all contributing to its overall financial stability.
The rating takes comfort from stable management, prudent decision-making and consistent revenue generation. Moreover, the ratings remain dependent on the Company's ability to maintain a sound financial profile, enhance capacity utilization through infrastructure and supply chain development, increase market share and market penetration amidst rising competition and censure effective management of trade debts.

About the Entity
Aslam Energy (Pvt.) Limited ('Aslam Energy' or 'the Company') was incorporated as a private limited company in 2018 under the repealed Companies Act'17. The Company primarily trades and distributes Diesel, Petrol, Furnace Oil, and Lubricants, while also offering fleet logistics services. The Company is owned by Mr. M. Waris (~34%), Mr. Asif (~33%), and Mr. Rana M. Arif (~33%). Mr. Arif serves as the Chairman & CEO of the Company. He is assisted by a team of experienced professionals.