PACRA Maintains the Entity Ratings of PARCO Gunvor Limited

PARCO Gunvor Limited (PGL)'s ('PGL' or 'the Company') assigned ratings hold association with its financially robust and stable sponsors, who maintain a significant presence across the global energy supply chain. PGL retains its distinctive position as the largest international Oil Marketing Company (OMC) operating in Pakistan. This, combined with its sustained market share among the top five local OMCs, strategically positions the Company to support regulatory efforts that influence the overall structural dynamics of the downstream energy sector. Overall, the Company's business and financial risks are well-managed, supported by sustainable topline revenue and profitability. The strategic decision to retain profits over an extended period has further solidified the Company's comprehensive financial footing. Volumetric sales gained momentum during 9MCY25, increasing by ~1.5% to reach 1.3mln MT. This growth was primarily fueled by significant increases in Excellium/HOBC (~137%) and special fluids (~135%). Modest improvements were also observed in SKO (~26%), lubricants (~11%), and HSD (~9.5%). However, this positive trajectory was partially mitigated by declines in the sales volume of bitumen (~59%), HFO (~57%), and MS (~0.18%). Despite the regulated pricing structure for POL products, the Company consistently demonstrates an ability to deliver strong financial performance. PGL's marketing and operations generate fairly stable cash flows, adeptly managing the inherent volatility in international oil prices and other persistent sectoral risks. The Company holds a strategic emphasis on a well-constructed and customer-centric approach. Furthermore, the Company's operations align with the shareholders' contemporary vision regarding the global energy transition, a perspective that is expected to shape new dynamics for both the Pakistani OMC sector and PGL moving forward.
The ratings are driven by the Company's preserved financial metrics. Moreover, strategic initiatives including sustainable development goals benefits the ratings. This along with sound governance framework and control environment are in compliance with the overall operations. However, timely materialization of said acquisition is imperative.

About the Entity
PARCO Gunvor Limited ('PGL' or 'the Company') is an unlisted public limited company. The principal activity of the Company is the marketing and sale of petroleum products. The Company's shareholding resides equally (i.e., ~50% each) between the Gunvor Group (Gunvor), through its subsidiary, Aquashore SA - headquartered in Geneva, and the Pak Arab Refinery Limited (PARCO). The Company has a six-member Board. Three members represent PARCO, while three are nominated by Gunvor. The Board's Chairman, Mr. Momin Agha, represents the Ministry of Energy - Petroleum Division, and is nominated by PARCO. Mr. Asif Iqbal heads the Company as the CEO. Mr. Asif holds more than two decades of overall experience in retail management, oil distribution and marketing, supply chain, and operations. Other members of the management are also seasoned professionals.