PACRA Maintains the Entity Ratings of PARCO Pearl Gas (Private) Limited

PARCO Pearl Gas (Private) Limited (PPGL or “the Company”), a wholly owned subsidiary of Pak Arab Refinery Limited (PARCO), has maintained a strong presence in Pakistan’s LPG sector for over four decades. The Company markets its products under the well-established brand names Pearl Gas and Super Gas. PPGL’s infrastructure enables the Company to efficiently manage annual volumes around 200,000 metric tons. This comprehensive operational framework includes eight filling plants, twelve hospitality facilities, five gas distribution centers, and three retail gas outlets, all strategically located across the country. The network is further supported by a total storage capacity of 3,273 metric tons and a broad distribution base consisting of 677 distributors and 1,000 B2B customers nationwide. As a part of its growth strategy, PPGL has recently expanded its storage capacity in Lahore by an additional 2,080 metric tons. This new facility is currently undergoing final testing and regulatory approvals prior to the commencement of operations. The Company’s success remains anchored in efficient supply chain management, supported by a diverse network of LPG suppliers and a dedicated fleet of over 80 bowsers and trucks, exclusively used for LPG transportation, with a combined carrying capacity of up to 1,504 metric tons, ensuring timely and uninterrupted product delivery. As of April 2025, PPGL holds the largest market share in Pakistan’s LPG sector at ~ 8.6%, serving the energy requirements of all three key segments: domestic, commercial, and industrial. LPG demand is typically driven by necessity, especially in energy-constrained environments where industrial users face inconsistent natural gas supply or lack viable substitutes. In FY25, improved availability of natural gas resulted in a marginal decline in overall LPG demand. Despite this, PPGL demonstrated resilience by increasing its sales volume to 153,817 metric tons during 9MFY25, up from 144,999 metric tons in 9MFY24, reflecting sustained market presence and operational strength amidst shifting energy dynamics. However, in revenue terms, the Company has witnessed a growth of 10.6% as of Mar, 2025 compared to 28.6% growth in FY24. The Company currently procures the majority of its LPG from its parent entity, along with direct imports and supplies from selected E&P companies. Approx. 72% of the LPG is sourced locally, while the remaining 28% is imported. PPGL maintains a favorable capital structure, supported by a debt-free balance sheet and a steadily growing equity base (9MFY25: PKR 4.2 billion; FY24: PKR 3.9 billion; FY23: PKR 2.7 billion; FY22: PKR 1.7 billion). The Company’s sound liquidity position further strengthens its financial risk profile. While overall costs are being managed, distribution expenses are expected to remain a key area of focus for management. In addition, to enhance business volumes and improve efficiencies, the Company is aggressively working on new initiatives including integration of supply chain through terminal and pipeline network.
The assigned ratings continue to draw strength from the Company’s strong sponsor, Pak Arab Refinery Limited (PARCO), which brings extensive experience in the oil and gas sector, along with seasoned management and strong technical and operational support. The ratings remain dependent on the sustainability of PPGL’s business model and its continued share in the country’s LPG market, while adherence to strong operational metrics and sustained or improved financial indicators remains imperative.

About the Entity
PPGL was originally incorporated in 1982 under the name Lifeline (Private) Limited. Following a series of acquisitions and takeovers, it was renamed Parco Pearl Gas (Private) Limited after its acquisition by Pak-Arab Refinery Limited on October 1, 2012. The company is governed by a five-member Board of Directors, all nominated by PARCO. Mr. Kashif Siddiqui, who previously served at PSO, assumed the role of CEO in January 2022 and has been effectively leveraging his expertise since then.