PACRA Maintains the Entity Ratings of Puma Energy Pakistan (Pvt.) 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). Going forward, consumption of petroleum products is expected to follow the same trajectory.
The assigned ratings of Puma Energy Pakistan (Pvt.) Limited reflects an established retail network and its adequate presence on the operational front. Currently, the Company operates a retail network of ~561 outlets nationwide, GB, and Azad Kashmir, with concentration in Punjab (~381) and Sindh (~98). Capacity utilization remains constrained amid an increasingly competitive landscape. Brand visibility is being strengthened through rebranding initiatives, with ~48 outlets rebranded under the Puma Energy name, alongside a Trademark License Agreement (TMLA) with Puma Energy International S.A. The Company intends to establish more Puma-branded outlets going forward, to further enhance its visibility. The sponsors’ extensive experience in the OMC sector and their demonstrated commitment to extend financial support, as required, underpin the ratings. Puma operates as a mid-sized player with a market share of ~1.26%. Revenue is primarily derived from PMG (~50%) and HSD (~47.5%), while HSFO (~1.9%), Lubricants (~0.5%), and Avgas (~0.1%) contribute the remainder. The topline declined by ~5.1% during CY24 on account of lower volumetric sales. Gross margins weakened; however, net margins posted a marginal improvement owing to reduced finance costs. The financial risk profile remains adequate, supported by a moderate working capital cycle and coverage indicators, though the borrowing cushion is limited. The conversion of the director’s debt into equity strengthened capitalization and improved leverage.
The rating captures the Company’s ability to sustain business operations through planned rebranding of retail sites, along with improving margins. Sustaining key financial metrics, working capital ratios, and coverages are crucial for ratings.

About the Entity
Puma Energy Pakistan (Pvt.) Limited, incorporated in 2001 and registered as an Oil Marketing Company (OMC), is primarily engaged in the procurement, storage, and distribution of petroleum products.
Mr. Amir Waliuddin Chishti holds ~99.99% shares and chairs the BoD. Mr. Fayaz Ahmad Khan, the CEO, has headed the Company since Sep-22. He is aided by a team of experienced professionals.