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

Aslam Energy (Pvt.) Limited (“AEPL” or “the Company”) assigned ratings reflect strong group ecosystem in which it operates, comprising an upstream OMC (Flow Petroleum), petroleum distribution entities, and a planned refinery (TransAsia Refinery Limited), providing procurement security, stable supply access, and greater integration across the value chain. The ratings also incorporate the sponsors’ extensive experience in the oil and gas sector and, benefits from established logistics infrastructure, including approximately 30 owned tankers and 8 leased vehicles, which supports distribution efficiency while generating ancillary carriage income. The OMC sector in Pakistan operates under a regulated, price-controlled framework governed by OGRA, with inherently thin margins and high volumes, where performance is largely driven by operational efficiency, supply chain integration, and market access rather than pricing flexibility. Within this context, AEPL has positioned itself as a bulk fuel distributor with a decent presence in Punjab, supported by a network of approximately 44 retail outlets and direct supply to industrial clients on credit terms. The sector remains concentrated at the top, with a few large players dominating volumes, while mid-tier and emerging OMCs compete on logistics strength, relationships, and supply reliability. AEPL’s operational reflects a cyclical yet overall expanding revenue trajectory, with volatility largely driven by global oil price movements and demand cycles. Revenues increased from PKR 45.6 billion in FY23 to PKR 48.3 billion in FY24, before moderating to PKR 35.8 billion in FY25. In 6MFY26, the Company recorded revenues of PKR 32.2 billion, supported by a shift in sales mix and improved product dynamics. FY25 sales volumes stood at 136 million litres, while 6MFY26 volumes were reported at 119 million litres. Within this, a notable change in product composition was observed, with HSD contributing around 80 million litres in FY25 and 32 million litres in 6MFY26, while MS increased its share from approximately 54.5 million litres in FY25 to around 87 million litres in 6MFY26, reflecting a clear shift in demand towards petrol-driven consumption. Gross margins remained cyclical in the range of 1.08%–3.01% over the review period, improving to 2.27% in 6MFY26 supported by a more favorable product mix and pricing discipline. Net profit margins remained thin at 0.25%–1.69% and continue to remain low compared to peers in the OMC sector. Financial risk indicators remain modest, with sound liquidity and coverage metrics. The working capital is largely funded through supplier credit and, primarily, through related party support, while available bank-funded lines are utilized to meet short-term funding requirements.
Going forward, management’s strategy focuses on expanding the retail network, improving utilization of logistics and distribution assets, and enhancing vertical integration through investment in TRL, aimed at strengthening supply security and improving pricing efficiency, with timely execution and required regulatory approvals remaining key considerations. Additionally, the FY25 audit is currently in progress and has been delayed due to certain adjustments, with timely completion and issuance of audited financial statements remaining an important consideration going forward.

About the Entity
AEPL was incorporated as a private limited company in 2018. 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.