PACRA Assigns Initial Entity Ratings to Attock Petroleum Limited

Attock Petroleum Limited ('Attock Petroleum' or 'the Company') is an integral part of the Attock Group (the Group), which traces its origins back to the incorporation of the Attock Oil Company Limited (Attock Oil Company) in 1913. The Group's foundational history in the region began with the historic first oil discovery at Khaur in the Attock district in 1915. The control of Attock Oil Company was later acquired by the Pharaon family, who led the Group’s evolution into the only fully vertically integrated oil conglomerate operating in Pakistan. This vertical structure comprises Pakistan Oilfields Limited (POL) in the upstream segment (exploration and production), Attock Refinery Limited (ARL) and National Refinery Limited (NRL) in the midstream segment (refining), and Attock Petroleum in the downstream segment (marketing and distribution). The Company is primarily engaged in the procurement, storage, and marketing of High Speed Diesel (HSD), Premier Motor Gasoline (PMG), XTRON, Light Diesel Oil, Furnace Oil, Jet Petroleum, Bitumen, Kerosene, and a range of automotive and industrial-grade lubricants, & other products. It operates a retail network of ~778 stations, including ~ 44 COCO sites, and holds owned and leased storage capacities of ~210,885 MT at its depots located Machike (~60,998), Port Qasim (~39,442), Rawalpindi (~19,420), Dera Ismail Khan (~18,908), Mehmoodkot (~17,028), Korangi (~14,087), Daulatpur (~13,887), Sahiwal (~16,128), and Shikarpur (~10,987). In addition to this, new PMG tanks are planned for the Rawalpindi & Port Qasim depots. Furthermore, the new oil depot at Pashtoon Garhi (Taru Jabba) is in progress. The Company has held its mark as the fourth largest OMC operating in Pakistan. This provides Attock Petroleum a room to support the regulator. Overall, business and financial risk are managed well. The topline and profits are considerably strong and ensure sustainability. This, along with the strategic decision to retain profits, has strengthened the Company's overall financial footing. Despite lower volumes and regulated pricing of PoL products, the Company remains adept at posting strong financial performance. Attock Petroleum mainly sources PoL product from local refineries, while some quantity of PoL is being imported. The Company remains exposed to sector-related persistent risks. The Company emphasizes a well-built and customer-centric strategy. Attock Petroleum has an established footprint in the local markets with a topline of ~PKR 474bln in FY25. Business margins remain steady within the range of ~4% to ~4.2% on the gross level, and ~2% to ~2.6% on the net level. The financial risk profile is characterized by strong coverages and cash flows, along with a substantial borrowing cushion on the balance sheet. Strong working capital cycle bodes well. Going forward, the management is eyeing expanding the existing network of storage and retail footprint, along with the introduction of alternate fuels. This, along with a sound governance framework and control environment, complies with the overall operations.
The ratings depend on the sustaining business volumes. Moreover, preserved financial metrics, along with strategic initiatives, including sustainable development goals, benefit the ratings. Maintaining the growth trajectory in the topline and profitability matrix is imperative.

About the Entity
Attock Petroleum Limited ('Attock Petroleum' or 'the Company') was incorporated in Dec-95; while its commercial operations began in Feb-98. In 2005, the Company was listed on the PSX. Attock Group (the Group) holds ~72.79% shareholding, held through two key subsidiaries: Pharaon Investment Group Ltd. (~34.38%) and Attock Refinery Ltd. (~21.88%). Other Group holdings own ~16.53% stake. Directors (and their associated families) hold ~6.91% stake in the Company. Free float, which includes the stake held by financial institutions of ~11.19%, stands at ~20%. The Company is primarily engaged in the procurement, storage, and marketing of PoL products and a range of automotive and industrial-grade lubricants. The Board comprises 7 members, including 4 Non-Executive, 2 Independent, and 1 Executive Director. Mr. Laith G. Pharaon chairs the Board. While Mr. Shuaib A. Malik heads the Company as the CEO. He is also the Group CEO since Jul-06. Other members of the management are also seasoned professionals.