Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has upgraded the entity ratings of Jinn Petroleum (Pvt.) Limited, marking a significant development for the emerging oil marketing company. The long-term rating has been improved from BBB to BBB+, while the short-term rating remains at A2, both reflecting a stable outlook.

According to a statement by The Pakistan Credit Rating Agency Limited, the upgrade is attributed to Jinn Petroleum’s evolving business profile and strategic initiatives in the petroleum industry. The company has shown consistent growth in retail expansion, now operating 98 retail outlets. Recent expansions at the Sahiwal storage facility have increased capacity, allowing for up to 170 pumps, while new facilities at Daulatpur and Sara-e-Norang are under development. These efforts are crucial for the company’s market penetration and overall business risk profile.

Jinn Petroleum has posted a revenue growth of approximately 46%, driven by pricing adjustments and increased sales volumes. The company continues to rely on local refineries and strategically utilizes imports. Financially, it benefits from reduced reliance on borrowings and an equity injection of approximately PKR 478 million from new strategic stakeholder Mr. Syed Saeed Athar and his family.

The ratings will depend on Jinn Petroleum’s ability to maintain market penetration and business margins. The timely completion of storage facilities and effective governance will be key to sustaining its financial metrics and capital structure.