Lahore, May 12, 2022 (PPI-OT):The Ratings reflect the sound business profile of Sitara Petroleum Service (Pvt) Ltd. (‘Sitara Petroleum’ or ‘the Company’) in line with current dynamics of petroleum industry. Sponsors of the Company are in the business for over three decades, reflecting their business acumen. The Company has exhibited improvement in margins on the back of high petroleum prices, lower operational costs and reduced financial costs. The financial risk profile is characterized by adequate leveraged capital structure. The equity has been boosted through profits. The Company has investment in real estate which supplement risk absorption capacity. The sponsors are engaged in real estate projects as well. The Company derives strategic impetus from its business ties with Gas and Oil Pakistan.

The ratings are dependent on the management’s facility to sustain its business volumes while holding the margins. Sustaining the business and financial profile along with improvement in the governance framework would be vital for the ratings. Meanwhile, financial transparency is considered paramount.

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