PACRA Maintain Entity Rating of Jinn Petroleum (Pvt.) Limited

Jinn Petroleum (Pvt.) Limited (“Jinn Petroleum” or “the Company”) has maintained its position as an emerging player in Pakistan's competitive oil marketing sector, supported by experienced sponsors and strategic alliances across the petroleum supply chain. The Company operates a retail network of over 100 outlets, primarily in Punjab and Balochistan, complemented by owned storage infrastructure, including the recently commissioned 6,800 MT expansion at its Hub facility. The Company maintains a market share of approximately. 1% within Pakistan’s OMC sector, which remains dominated by major players such as PSO (42.2%), GO (12.6%), Shell (8.2%), and APL (8.1%). In terms of volumes, Pakistan’s OMC industry recovered in CY25, with total sales reaching 16.45 million tons (up 5% YoY), driven by relatively lower retail prices and improving demand. However, Jinn Petroleum’s annual sales volumes declined by 18% to approximately 157,235 MT in FY25 (FY24: 191,560 MT), reflecting competitive pressures in the sector. The trend continued into 1HFY26, where industry sales rose 2% YoY to 8.16mln tons, while Jinn Petroleum’s volumes stood at 57,874 MT, broadly flat relative to the corresponding period last year. In line with the decline in volumetric sales, the Company's revenue moderated to PKR 37.8 billion in FY25 (FY24: PKR 57.6 billion) and PKR 18.9 billion in 1HFY26. Operational efficiency, however, remained stable, with gross margins at 2.9% (FY24: 2.8%), closely tracking the industry average of ~3.0% in FY25 (FY24: 2.6%). The Company meets its working capital requirements through a combination of internal cash generation and available banking lines of PKR 4.7 billion, of which a sizable portion remained utilized during FY25, reflecting the working capital-intensive nature of the OMC sector. Jinn Petroleum carries no long-term debt, limiting structural leverage risk, while shareholders’ equity stood at PKR 2.9bln as of FY25, a modest level relative to both the scale of its operations and larger, well-capitalized competitors. Coverage ratios remain strong, underscoring comfortable debt-servicing capacity. Jinn Petroleum is actively pursuing expansion strategies aimed at increasing both storage capacity and retail footprint, alongside geographic diversification to achieve presence across additional provinces. Successful execution of these expansion plans is expected to improve the Company’s market share and available volumes in the broader OMC industry and is considered an imperative factor for the future growth of the entity.
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 and market share through enhanced retail and storage infrastructure. Strengthening governance through independent oversight on the Board also remains imperative.

About the Entity
Jinn Petroleum (Pvt.) Limited was incorporated in 2016 by Mr. Aamir Agha (late) and Mr. Asad Siddique following their receipt of an OMC license from OGRA. The founding families own the Company and recently welcomed Syed Saeed Athar and his family as significant shareholders, bringing additional local market expertise. The Company is led by the second generation of founders, with Mr. Ashar Siddiqui serving as Chief Executive Officer.