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Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed the entity ratings of Aslam Energy (Pvt.) Limited, highlighting the company’s strong business profile and its affiliation with Flow Petroleum (Pvt.) Limited. The ratings reflect Aslam Energy’s robust trading and logistics operations, as well as the extensive industry experience of its sponsors.
Aslam Energy operates primarily in the trading and distribution of petroleum, oil, and lubricants (POL) products, with additional services in fleet logistics. The company’s retail network spans approximately 44 outlets concentrated in the Punjab region, while its bulk sales segment serves corporate clients. Aslam Energy’s logistics fleet consists of 36 vehicles, servicing group companies such as Flow Petroleum and Quality 1.
The company reported a 5.9% increase in revenues for FY24, driven mainly by its trading and distribution activities, which account for 98% of its income. However, profitability was affected by high procurement costs and rising operational expenses due to inflation.
A significant development in Aslam Energy’s strategic plans is the acquisition of a 65% equity stake in TransAsia Refinery Limited. This move is expected to enhance Aslam Energy’s supply chain capabilities, though it is contingent on obtaining several regulatory approvals.
Aslam Energy’s financial stability is underpinned by a low-leverage capital structure, stable working capital cycle, and adequate coverage ratios. PACRA’s rating also underscores the importance of effective management of trade debts and continued revenue generation.
The company’s future ratings will depend on its ability to maintain financial soundness, increase market penetration, and execute its infrastructure development plans amidst growing competition.