Be Energy Limited ('Be Energy' or the 'Company') was incorporated in Oct-1996 as a Private Limited Company and subsequently transformed its legal status to a Public Unlisted Company in Nov-2017.

The Company had commenced its operations from Overseas Oil Trading Company (Pvt.) Limited ('Oil Trading') and Bakri Trading Company Pakistan (Pvt.) Limited ('Bakri Trading'). In 2016, the Company was granted permission to merge the Overseas Oil Trading Company with and into Bakri Trading. Post merger, Bakri Trading changed its name to Bakri Energy (Pvt.) Limited.

The Company specializes in the procurement, storage, distribution, and marketing of petroleum products and lubricants. The Company has a network of 532 retail outlets with a significant presence in Sindh and Punjab, while expanding in North Punjab. The Company has one of the largest oil storage infrastructures in the country, totaling approximately 231,725 MTs.

A major shareholding of ~90.98% resides among Rawafid Investments LLC, followed by Energy Petroleum Consultant Company (~8.99%), and Directors (~0.03%). 

The Group business has been governed and administered by the members of Bakri Family, and they are in the process of preparing a succession plan for their business in the future. The second generation has been inducted into the business.

Bakri Group was founded in 1973. Initially, the group provided bunkering services to calling and passing vessels. Soon, the group started trading in physical oil and oil products. The Bakri group then established companies that provided shipping, time charter services, shipping management, marine support, water treatment plant and other services. Bakri group continues to provide services in the Middle East, Sub- Indian, Africa, and the Far East with the ambition to cover the rest of the world.

The financial strength of the sponsors is considered as good as the Company represents that sponsors have well-diversified profitable businesses.

The overall control of the Company lies with a five-member Board (BoD). which comprises three Non-Executive Directors, while there is one Executive and one Independent Director. Three members, including the CEO, are from the Sponsoring family.

Dr. Zohair Abdul Kader B AlBakri serves as the Chairman of the BoD. He holds directorships in various group companies, including but not limited to Rawafid Al Huqooq Industrial Co., Rawafid Al Hadara Holding Co., and Rawafid National Services Co. Mr. Shabab Saeed, an Independent Director, has an overall experience of more than three decades in the petroleum sector. He is currently the CEO of International Oil Co. Limited. All other Board members possess diversified experience and business acumen.

The BoD is assisted by one committee, namely, the ‘Executive Committee’. This committee helps oversee the overall operations of the Company and guides management in developing effective operational and financial policies.

The External Auditors of the Company, M/S RSM Avais Hyder Liaquat Nauman Chartered Accountants, have provided an unqualified opinion on the financial statements as of Dec-2024. The auditor is QCR rated and on SBP panel 'A' category of auditors. 

The Company's operations have been bifurcated into five broad functional areas comprising: i) Operations, supply chain & logistics, ii) Projects, iii) Marketing, iv) Finance, and v) Human Resources. All department heads report to the Managing Director (MD), who then reports to the CEO. The CEO reports to the BoD.

Mr. M. Hani Abdul Kader B AlBakri has been recently appointed as Chief Executive Officer (CEO) and has a diversified professional experience. Previously, Mr. Hussain Al Shammaa was the CEO of the Company. Mr. Qasim Zaheer maintains his role as Managing Director and briefs the CEO regarding the Company’s operations regularly. He has an overall experience of more than two decades and has served as the MD and CEO of TOTAL Oil Pakistan Limited and General Manager at PSO. He is assisted by a team of professionals. 

To oversee the management of the Company, four committees have been formed, comprising various members of the management team. The committees include i) Procurement Committee, ii) Product Pricing Committee, iii) HR Committee, and iv) Marketing Support Team.

The Company’s operating environment relies on an IT infrastructure supported by ERP (Enterprise Resource Planning) solutions. The software has been acquired from M/S Sidat Hyder. The IT infrastructure is effectively integrated with all the departments and ensures proper financial and operational control.

The Company’s dealer directly places orders on the online ordering sales system, after which orders are entered into the system, undergo a credit check by finance, and are then fulfilled by operations. Dealers and carriage contractors are responsible for safe product delivery once orders leave the Company’s storage facility.

Pakistan relies significantly on imports to meet its energy demand. During FY25, the country consumed ~16.3mln MT of petroleum products (FY24: ~15.3mln MT), an uptick of ~7% YoY. This uptick was primarily due to three reasons: higher demand following a reduction in HSD and MS prices, curtailment of smuggled oil products, and an increase in automobile sales. MS remained the volume leader with sales of ~7.6mln MT (FY24: ~7.14mln MT), an uptick of ~6%, followed by HSD (FY25: ~6.89mln MT, FY24: ~6.26mln MT), an uptick of ~10%. However, FO witnessed a sharp decline of ~23% (FY25: ~0.81mln MT, FY24: ~1.04mln MT). Currently, there are ~35 registered OMCs. There are five (5) listed OMCs operating in the country, namely (i) Pakistan State Oil (PSO), (ii) Shell Pakistan (SHELL), (iii) Hascol Petroleum (HASCOL), (iv) Hi-Tech Lubricants (HTL), and (v) Attock Petroleum (APL). Going forward, consumption of petroleum products is expected to follow the same trajectory.

Be Energy Limited has contributed to increased competition in the industry and is among the top ten companies in the OMC market. The top 5 OMC players hold ~79% market share in sales. Out of the remaining ~21% market share of other OMCs, Be Energy holds ~2.1% of the market share in sales.

The Company generates revenue through sales of PMG (~60.7%), followed by HSD (~36.8%), HSFO (~2.1%), and Lubricants (~0.4%). During CY24, the Company sold ~361,618 MT in volumes and generated revenue of ~PKR 115.9bln. During 6MCY25, the Company sold ~179,102 MT in volumes (6MCY24: ~197,930 MT), a dip of ~9.5%, leading to a decline of ~13% in revenue, reported at ~PKR 55.6bln (6MCY24: ~PKR 64.1bln). Going forward, revenue is expected to increase as the Company plans to expand its network of retail outlets in Punjab and Sindh.  

During CY24, the Company reported a gross margin of ~2.8%, whereas the operating margin was reported at ~1%. On the net level, a minimal margin of ~0.3% was reported. During 6MCY25, the Company reported a gross margin of ~3.4% (6MCY24: ~2.5%), an uptick due to a decrease in international POL prices. The Company reported an operating margin of ~1.2% (6MCY24: ~0.8%), a trickle-down effect of an increase in gross margin. At the net level, the Company reported a profit margin of ~0.9% (6MCY24: ~0.1%), due to a decline of ~84% in finance cost along with an increase in other income. Going forward, margins are expected to follow a stable trend. 

Chevron Brands International LLC (Chevron), a subsidiary of Chevron Corporation, has entered into a long-term trademark licensing agreement with Be Energy Limited, marking the return of the Caltex brand to fuel retailing in Pakistan. All operations of Caltex-branded retail outlets will be managed by Be Energy. This will boost the Company's overall outlook.

As of CY24, the Company reported inventory days at ~47 days, while reporting trade receivable days at ~4 days. The gross working days, therefore, were reported at ~51 days. Trade payable days as of CY24 were reported at ~40 days, resulting in net working capital days of ~11 days. As of 6MCY25, the Company reported inventory days of ~47 days (6MCY24: ~32 days). Trade receivable days reduced to ~4 days (6MCY24: ~5 days), indicating the Company's efficiency in collecting receivables. On the contrary, trade payable days increased to ~42 days (6MCY24: ~28 days), due to better credit terms from the supplier. On the net level, the Company reported net working capital days of ~8 days (6MCY24: ~8 days). Borrowing cushion remains stable. 

During CY24, the Company reported FCFO of ~PKR 1,727mln, whereas total finance cost was reported at ~PKR 186mln. This led to an FCFO/Finance Cost cover of ~9.3x. During 6MCY25, the Company reported FCFO of ~PKR 951mln (6MCY24: ~PKR 311mln), a significant uptick of ~205% due to an increase in PBT by ~105%. Finance costs decreased by ~84%, reported at ~PKR 23mln (6MCY24: ~PKR 143mln), due to a reduction in policy rate. Resultantly, the Company reported a substantial uptick in FCFO/Finance Cost cover reported at ~40.8x (6MCY24: ~2.2x). Going forward, coverages are expected to remain stable. 

As of CY24, the Company reported total borrowings of ~PKR 1,014mln, whereas shareholders' equity stood at ~PKR 16,378mln. Hence, the leverage of the Company was reported at ~5.8%. As of 6MCY25, total borrowings of the Company witnessed a slight uptick, reported at ~PKR 87mln (6MCY24: ~PKR 86mln). The shareholders' equity witnessed an uptick of ~3% reported at ~PKR 16,886mln (6MCY24: ~PKR 16,387mln) due to an increase in accumulated profits. This resulted in stable leverage of ~0.5% (6MCY24: ~0.5%). Going forward, leverage is expected to remain stable.