Lahore, December 26, 2022 (PPI-OT):Total PARCO Pakistan Limited (TPPL) has been assigned AAA rating by PACRA. The rating reflects the Company’s position as the largest international oil marketing company (OMC) in Pakistan, and also takes into account the company’s plans to grow its business in key focus areas. Being the 2nd largest and one of the most advanced OMCs in the country, TPPL holds significant strategic importance in the domestic energy sector. This also provides TPPL with a strong base to work closely with regulators for improving the overall structural landscape of the downstream oil marketing sector. The Company’s strategy is well thought out and robust, which position it to grow sustainably in the future.
TPPL enjoys a sustainable supply position with credible and supportive sponsors. As a consequence, its marketing and supply operations generate fairly stable cash flows, despite the volatility in international market prices volatility and other persistent risks. Maneuvering its strategy around concept of ‘Service Station’ rather than ‘Petrol Pump”, TPPL is aiming to build and retain its customer base by developing brand loyalty that goes beyond transactional. In order to remain aligned with contemporary world’s energy needs, the company has a clear view on the global energy transition.
The rating also remained cognizant to strategic initiatives of TPPL, which, inter alia include construction of new storage sites, expansion in production capacity of lubricants plant, sustainable development goals and initiatives towards its corporate social responsibilities. The company’s sound governance framework and control environment augurs well for smooth and compliant business operations. Deployed IT infrastructure at group level is considered robust, mitigating any business interruption risk.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com