PACRA maintains Entity Ratings of Be Energy Limited

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, primarily due to an increase in automobile sales. MS remained the volume leader with sales of ~7.6mln MT (FY24: ~7.14mln MT), followed by HSD (FY25: ~6.89mln MT, FY24: ~6.26mln MT). However, FO witnessed a sharp decline of ~23% (FY25: ~0.81mln MT, FY24: ~1.04mln MT).
The ratings of Be Energy Limited ('Be Energy' or 'the Company') drive comfort from a strong association with BE Group (‘the Group’), a Saudi Arabia-based conglomerate with a significant global footprint in energy-related businesses, including downstream oil operations across Asia and Africa. The presence of sponsors on the Board provides support to the governance framework. The Company generates ~61% of its revenue from sales of PMG, followed by HSD (~37%), while HSFO and Lubricants contribute ~2% to the topline. The Company had consistent revenue growth in the past; however, a shift in industry dynamics has resulted in a volume-driven decrease in revenue. The Company has strategically expanded its network to 532 retail outlets, distributed nationwide. Favorable gross margins, due to reduced international oil prices, along with increased hospitality income, support the Company’s bottom line. However, at the net level, margins remained squeezed. A key strategic initiative has been the licensing agreement with Chevron to operate under Caltex brand. Being a globally recognized brand, Caltex has enabled Be Energy to attract customers to the retail outlets. Currently, the Company operates 110 retail outlets under Caltex brand. This partnership has strengthened Be Energy’s positioning in a highly competitive market and is anticipated to further enhance brand visibility and performance in a competition that is expected to intensify in the future. The Company intends to open additional Caltex-branded stations to drive volumetric growth and improve financial outcomes. Be Energy maintains a strong financial profile, characterized by an adequate working capital cycle and disciplined leverage management. The sponsors’ strong business acumen continues to be a critical factor supporting the ratings.
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, coverages, and leveraging, remains crucial to the rating.

About the Entity
Be Energy Limited ('Be Energy' or 'the Company') became operational in 2007. The Company is mainly engaged in the procurement, storage, distribution, marketing, and import of petroleum products and lubricants. The Company is mainly owned by Rawafid Investments LLC (~90.98%), a UAE-based company, followed by Energy Petroleum Consultant Company (~8.99%), a Kuwait-based company. Rawafid Investments is primarily owned by Bakri family, which holds a stake in BE Group operating in aviation fuel services, shipping, time charter services, shipping management & marine support services across MENA region. Be Energy's BoD is chaired by Dr. Zohair Abdul Kader B AlBakri. Recently, Mr. M. Hani Abdul Kader B AlBakri has been appointed as the CEO. He is aided by a team of experienced professionals.