PARCO Pearl Gas (Pvt.) Limited (PPGL) (“the company”) was incorporated in Pakistan on 16th January 1982 as a private limited company. Pak Arab Refinery Limited (PARCO), a joint venture between Government of Pakistan and the Emirates of Abu Dhabi, acquired 100% shareholding of the company on 1st October, 2012.

PPGL operates in liquefied Petroleum Gas (LPG) sector in Pakistan. The company’s main business is import, storage, bottling and marketing of LPG. PPGL deals in Retail and Bulk segments. Retail segment constitutes distributorship network across the whole country and bulk segment includes industrial customers including textile sector, ceramics, and food industry etc. The company is dependent on imported and local LPG sources.

The Company is principally engaged in the business of sale of Liquefied Petroleum Gas (LPG) as well as its related equipment and accessories. PPGL has a strong nationwide presence, operating a network of filling plants, hospitality units, gas centers, and retail gas shops. The company is supported by a dedicated fleet of over 80 trucks ensuring efficient and reliable LPG transportation across the country Domestic Segment, Commercial Segment and Industrial Segment. The company has designed its Cylinders as per the requirements of the consumer ranging from 6KG cylinder to 45.4Kg for domestic consumer and for commercial segment company has designed the cylinders upto 200kg and lastly for industrial segment company provide the LPG in Bulk Tanks.

PPGL is 100% owned by Pak Arab Refinery Company (Pvt.) Ltd, a joint venture between Government of Pakistan and Emirates of Abu Dhabi, 60% of the stakes are owned by the Government of Pakistan.

In its 40 plus years in Pakistan the company has amassed vast experience in serving the needs of Pakistan’s energy market, and offers customized energy solutions for a wide range of applications for domestic, industrial, and commercial consumers. Considering the importance of the company, stability is considered strong.

PPGL enjoys the largest market share in the country with around 200,000 metric tons of LPG sales per annum in both retail and bulk segments

Strong ownership structure demonstrated by PARCO, acts as a backbone for PPGL, providing absolute operational as well as financial support, whenever the need arises.

The Company’s overall control is overseen by five-member Board of Directors. The Chairman, non-executive director of the board is same as PARCO’s Managing Director.

Mr. Irteza Ali Qureshi is the Chairman of the Company, a UK qualified Chartered Accountant with over 25 years of proven track record in developing business. PPGL’s board comprises of highly qualified members, mostly from well-renowned institutions. Mr. Kashif Siddiqui is the CEO of the company, has over 27 years of progressive career in downstream Energy businesses with local and international industry leaders.

During FY24, the Board convened multiple times to approve the financial results, review the progress of ongoing mega projects, and evaluate the annual budget. All major expansion plans were also reviewed and approved by the Board. The Board is supported by the Audit Committee, which plays a critical role in overseeing key financial and operational matters.

PPGL's Auditor, KPMG Taseer Hadi & Co, one of the big four firms, have satisfactory QCR Rating from the Institute of Chartered Accountants of Pakistan and classified in category "A" on the panel of auditors maintained by the State Bank of Pakistan under section 35 of Banking Companies Ordinance, 1962. They have expressed an unqualified opinion on the company's financial statement as at year end-Jun24.

PPGL has a lean organizational structure with an experienced management team and a balanced mix of professionals.

Mr. Kashif Siddiqui is an accomplished professional with a Bachelors in Engineering in Mechanical discipline from the NED University of Engineering & Technology, Karachi, and a Masters in Business Administration (General Management) from the Institute of Business Administration (IBA), Karachi.

With over 27 years of experience in the Energy sector, he has demonstrated expertise in Operations Management, Supply Chain, Engineering, Sales & Marketing, Commercial and Business Development. Since January 2022, he has been serving as the Chief Executive Officer of PARCO Pearl Gas Pvt Ltd (PPGL), a subsidiary of Pak Arab Refinery Co Ltd (PARCO), where he oversees the distribution and marketing of Liquified Petroleum Gas (LPG), making PPGL the largest LPG company in Pakistan. His leadership has contributed to the company's extensive customer network, catering to both B2B and B2C domains. With his wealth of experience and strategic vision, Mr. Siddiqui continues to drive PPGL towards further growth and success in the energy industry.

Mr. Ali Ahmad is a seasoned professional in the energy sector, holding a Bachelor's degree in Mechanical Engineering and an MBA from the Institute of Business Administration (IBA), Karachi. With a distinguished career spanning key roles in operations, project management, and commercial functions, he brings a wealth of expertise to the industry. As Chief Commercial Officer at PARCO Pearl Gas (Private) Limited, Mr. Ahmad has led several strategic initiatives aimed at enhancing operational efficiency and driving business growth. His leadership is marked by a strong focus on strategic planning, cross-functional collaboration, and execution excellence, positioning him as a key contributor to the company’s continued success in Pakistan’s energy landscape.

Mr. Shehzad Ul Haq is a highly accomplished finance professional, currently serving as the Chief Financial Officer at PARCO Pearl Gas (Private) Limited. With over 20 years of experience in financial management, corporate governance, and strategic planning, he has built a strong track record of excellence in the energy sector. He holds a solid academic foundation and is known for his expertise in budgeting, regulatory compliance, and internal controls. In his role, he works closely with the Audit Committee to ensure sound financial oversight and risk management. His forward-looking approach and commitment to financial discipline continue to support the company’s growth and long-term sustainability.

Over the years PPGL’s effective management played a significant role in empowering the organization through its progressive results. Additionally, management’s effective decision-making cause processes more systematic while the robustness of control systems is considered a reflection of strong management.

The company generates MIS reports on daily, fortnightly, monthly, and annual basis. These mainly include daily cash position, daily production report, saleable stock position, Treasury and Accounts section MIS, monthly debtors aging, monthly management accounts, and Annual Financial Statements.

PPGL has successfully implemented the state-of-the-art SAP S/4HANA system across the organization, including the industry-specific IS-OIL module, positioning it as one of the few companies in Pakistan, and the only LPG player, to leverage this advanced technology. This comprehensive ERP implementation enhances end-to-end integration, streamlines planning and coordination across business units, and significantly improves operational efficiency, data accuracy, and strategic decision-making.

Natural gas is a universal fuel and a major contributor of energy to Pakistan. LPG is used as an alternative to Natural Gas and due to the continuous depletion of gas reserves no significant discoveries, consumers are diverting to alternative resources. There are +350 companies selling LPG throughout the country and nearly ~2 million MT of volumes sold in a year. Meanwhile, work on various projects; importing indigenous gas, addition of RLNG through regasification terminals and respective enhancement of pipeline capacities to meet the supply deficiency. OGRA is the regulatory authority which sets prices and LPG Policy 2016 OGRA fixes the maximum prices, however LPG can be sold below the maximum prices. The maximum producer price is PKR 2,350.97 and maximum consumer price is PKR 2,838.31 per 11.8 Kg cylinder as of 01st June, 2025.

PPGL has the largest market share in business to business and business to consumer market with ~8.6% market share as of April, 2025.

PPGL has demonstrated strong performance over the past three years, recording revenues of PKR 37.801 billion in FY24. Although LPG prices are regulated by OGRA, the company, as the market leader in the LPG consumer segment, surpassed the PKR 37 billion revenue mark due to favorable pricing dynamics. In terms of operational performance, PPGL successfully handled 192,235 MT of volume during FY24 (FY23: 140,630 MT; FY22: 123,474 MT). However, as of March 2025, the company recorded sales of PKR 31.361 billion. The slowdown in sales growth was primarily attributed to RAVEX expenditure incurred in October 2024 for scheduled plant maintenance, which also resulted in a slight decline in volume handled to 153,817 MT. It is important to note that all the reported revenues in addition to PKR 37.801 billion and PKR 31.361 billion are net of sales tax.

PPGL operates in a regulated market, which typically results in stable net profit margins of around 3% for the Company. The company reported a net profit of PKR 1,219 million for FY24, up from PKR 968 million in FY23. However, as of March 2025, profit stood at PKR 520 billion, reflecting a decline of approximately 50% compared to the same period last year. The gross profit margin also declined from 6% in June 2024 to 4.4% in March 2025, primarily due to higher-cost imports made in October 2024 during a scheduled plant maintenance shutdown. Net profit margins for 9MFY25 decreased to 1.7%, down from 3.2% in FY24, mainly due to a reduction in interest income following a decline in interest rates, as well as lower gross margins were recognized due to increased cost of imported LPG and lower bulk sales.

PPGL is effectively managing the fleet of over 80 vehicles. These trucks are automatic and have the capacity to carry up to 1,504 MT of LPG. Furthermore, the Company is planning to enhance its storage from 3,273mln MT to 5,200mln MT in next three years, of this the company recently has completed the expansion of Lahore filling plant by 2,080 MT which is still to be opened for operations after testing and regulatory approvals. And also working to enhance its delivery operations in retail sector.

Working capital requirements is fulfilled sufficiently by Company's internal cash flows. Company is managing its working capital really well as evident from net working capital days of -10 during FY24 (FY23: -12days, FY22: -9days), the net working capital days as of March 2025 stood at -4 compared to -17 days as of SPLY. The Company does not face any liquidity crunch and has not availed any short-term borrowings.

Company is able to generate sufficient free cash flows from its operations; 3QFY25: 239mln, (FY24: 894mln, FY23: 473mln, FY22: 572mln). Company does not have any significant borrowings hence interest coverage ratio reached 128.1x during FY24 and 29.1x for March, 2025 (FY23: 49.8x, FY22: 64.3x) and debt coverage ratio stands at 25.6x in the FY24 and 8.7x for March, 2025 (FY23: 13x, FY22: 20.2x).

The Company has a very healthy capital structure which is evident from its leveraging ratio. Leveraging of the Company is only 1.9% at FY24 (FY23: 3.5%, FY22: 6.2%) and 1.3% for 3QFY25. Going forward, with the launch of product diversification the Company's leveraging is expected to increase in near future.