AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore, June 17, 2023 (PPI-OT): The assigned ratings incorporate Aslam Energy (Pvt.) Ltd.’s extensive experience of sponsors and the Company’s lengthy operating track record. The ratings further factor in the strong business and financial linkages with the group company. The Company is primarily engaged in two business segments namely i) Trading and distribution of POL products. This segment is further split into retail and bulk units. Under the retail side, the Company operates a network of 56 retail stations as at Dec’22 which is mainly spread out in the Punjab region whereas, under the bulk segment the company provides POL products directly to customers ii) Furnishing fleet logistic services (Carriage income) to OMCs, mainly to sister concern; Flow Petroleum.
During FY22, the revenue of the Company increased to PKR 20,758mln (FY21: PKR~7,465mln), exhibiting a sales growth of ~178%. Revenue from sales of POL products represents largest portion of total sales (~98%), whereas remaining (~2%) from fleet income. However, Financial risk profile of Aslam Energy is characterized by adequate leveraged capital structure. In addition, the Company has experienced an improvement in its cashflows, which has further contributed to its ability to effectively manage financial risk.
The rating takes comfort from stable management, prudent decision-making and consistent revenue generation. Moreover, the ratings remain dependent on AEPL’s ability to maintain a sound financial profile, enhance capacity utilization through infrastructure and supply chain development, increase market share and market penetration amidst rising competition and censure effective management of trade debts.
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
The post PACRA Maintains Entity Ratings of Aslam Energy (Private) Limited appeared first on Pakistan Business News.