PACRA Assigns Initial Entity Ratings to My Petroleum (Private) Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- September 29, 2022 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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The assigned ratings incorporate My Petroleum (Pvt.) Limited's strong financial strength of the sponsor, evolving retail network, operating efficiency and experienced management team. Sponsor of My Petroleum laid foundation of logistics business which was main transporter for distribution and marketing of LPG. In 2010, sponsor expanded its business activities by incorporating another company for sales and distribution of POL products. Later on, My Petroleum was incorporated in - Jan'16 as an OMC. Key product portfolio of the Company comprises HSD and PMG, being key revenue generators.

The ratings factor Company's arrangement with Lukoil - a Russian lubricant brand, for marketing and distribution of high-performance lubricants across Pakistan. My Petroleum capitalizes on strong managerial support from its sponsor who has significant knowledge in oil procurement and distribution. The Company is positioned at 11th number (MS and HSD) as of June'22. Currently, it has ~5,100MT owned storage facility. The Company is in process of expanding its storage facility at Hibibabad. Management of the Company intends to finance capex through equity. My Petroleum is operating all over Punjab and will be expanding its retail network to Sindh after commencement of operations of storage facility at MirpurKhas. My Petroleum benefits from strategic positioning of stations that it feeds.

The Company has planned to aggressively penetrate the retail segment in the growing industry by targeting expansion across semi-urban and rural areas as urban market is highly competitive. The Company has an edge by using a fleet of oil tankers of "My...