PACRA maintains Entity Ratings of Be Energy limited

The ratings continue to reflect strong sponsorship of Be Energy, the Saudi based BE Group (previously known as the Bakri Group). The sponsor has global presence in energy related businesses, including operations in the downstream oil segment, located in various countries of Asia and Africa. Be Energy has captured market share of ~2.9% as at Jun-22, gained through ~416 retail pumps spread across the country. They aim to construct company-operated retail outlets in major cities of Pakistan. Further, the Company holds an oil storage infrastructure of 207,725 MTs distributed between six terminals, spread across Port Qasim, Machike, Shikarpur, Daulatpur, Sahiwal and Mehmood Kot. The key product portfolio of the Company comprises of four products; HSD, MOGAS, HSFO and Lubricants, with HSD and MOGAS being key revenue generators. An additional revenue stream of hospitality income is generated through subletting of unutilized storage units. Be Energy has maintained an adequate financial risk profile through moderate coverage indicators and leveraging.
The ratings remain dependent on Be Energy’s ability to enhance its capacity utilization, through infrastructure and supply chain development, in order to augment its market penetration and strengthen its relative position. Sustainability of bottom-line and key financial metrics, in terms of working capital ratios, financial coverages and gearing, remain crucial to the rating.

About the Entity
Be Energy Limited incorporated in Pakistan and commenced its operations in 2007. Be Energy is owned by Rawafid Investments LLC (~90.97%) based in UAE and Energy Petroleum Consultant Company (8.99%) based in Kuwait. The shareholding of Rawafid Investments LLC lies with the members of Bakri family. BE Group was founded in late 60's, the group provides aviation fuel services, shipping, time charter services, shipping management & marine support services in the middle east. Primarily, Be Energy is engaged in the procurement, storage, distribution, marketing and Import of petroleum product and lubricants. The board of Be Energy comprises five experienced professionals, including the CEO. Two members are sponsors of BE Group, while two members hold key positions in the group. All the directors are actively involved in the oversight of the company. Mr. Hussain Al Shammaa is the CEO of the company. He has been involved in the oil business for the last 38 years and was previously associated with Kuwait Petroleum Company (KPC).