Lahore, September 22, 2021 (PPI-OT):Sponsors of Halmore, 225MW combined cycle power plant (A+, rated by PACRA) operating since 2011, have joined hands with owners of OILCO Petroleum (Pvt.) Limited (OILCO) to promote and grow the business of OILCO in Pakistan. OILCO incorporated in 2013, is engaged in the business of marketing of petroleum products and lubricating oils. The Company has sizeable storage capacity available at its disposal. Under the patronage of primarily Halmore sponsors and also other shareholding group, SEARS Energy DMCC has been established as a energy trading company in Dubai. SEARS Energy, would act as a supplier of petroleum products to OILCO.

Sponsors are arranging a sizeable LC ($15mln) in favour of OILCO, which is a kind of quesi equity to OILCO. The sponsors have an experience of more than two decades in the energy sector. This has given them an understanding of the dynamics of the market, and enabled them to establish relationships with suppliers and customers. Currently, it has over 55 retail outlets and aims to aggressively penetrate the retail segment in the growing industry. The Company plans to finance the capex through debt and equity (50:50). Currently, OILCO has adequate financial risk profile. The ratings take comfort from the commitment of sponsors to inject phase wise equity in order to fund growth plans.

The rating particularly recognizes on going developments including i) completion of transformation in shareholding structure, ii) planned expansion iii) equity injection and iv) adoption of a conservative financial matrix. In addition to timely implementation of these initiatives, the ratings are dependent on OILCO’s ability to achieve desired market penetration along supportive supply chain network and healthy margins.

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