PACRA Maintains the Entity Ratings of Be Energy Limited

Be Energy Limited's ("BE Energy" or "the Company") assigned ratings reflect its position as a key player in Pakistan's oil marketing sector and its strong affiliation with the Bakri Group, a Saudi Arabia-based conglomerate with over five decades of diversified operations in energy, shipping, and allied trades across the Middle East, Africa, and the Far East. The Company specializes in the procurement, storage, distribution, and marketing of petroleum products and lubricants, operating a network of 554 retail outlets (December 2025: 545) with a dominant presence in Sindh and Punjab, and boasts one of the country's largest oil storage infrastructures totaling approximately 231,891 MTs across seven strategically located terminals. During FY26, Pakistan's downstream petroleum sector recorded aggregate volumes of approximately 16.19mln MT, largely unchanged from 16.32mln MT a year earlier. Early-year demand strength tapered off in the final quarter amid heightened Middle East tensions, elevated retail prices, and an already high levy structure. Motor Spirit edged up ~1% to 7.68 million MT on steady urban mobility. High-Speed Diesel slipped 1% to 6.85 million MT as economic activity cooled. Furnace Oil plunged 26% to 0.60 million MT amid the power sector's shift to cleaner alternatives. Key regulatory measures included restricting HSD imports to PSO while permitting private OMCs to continue petrol imports under OGRA oversight. The shift from weekly to daily fuel price notifications also enabled quicker transmission of international price changes to consumers. BE Energy maintained its position among the industry's top ten OMCs, recording aggregate sales volumes of approximately 359,000 tons during FY26. Market penetration improved modestly from around 2% for most of the year to approximately 3% by June 2026, supported by the gradual expansion of its retail network and the ongoing conversion of outlets to the Caltex brand under a long-term trademark licensing arrangement with Chevron Brands International LLC. Financially, BE Energy posted a sound CY25 performance. Net revenue settled at ~PKR 114,226 million, down a marginal ~1.4% year-on-year. Profitability improved: gross margin rose to ~4.2% (CY24: ~2.8%) and net margin to ~1.8% (CY24: ~0.3%). This was driven by a ~9% drop in finance charges to ~PKR 406 million on lower short-term borrowing and a favorable policy rate, alongside a jump in other revenue to ~PKR 1,115 million from hospitality income, and a rise in ancillary income to ~PKR 949 million mainly due to IFEM-related input sales tax adjustment. Net profit rose sharply to ~PKR 2,012 million, from ~PKR 335 million the prior year.
Going forward, the rating will remain dependent on BE Energy's ability to navigate the evolving industry landscape and successfully execute the planned expansion of its Caltex-branded retail network (June'26: 156 outlets) to drive volumetric growth and strengthen its competitive position. The Company's ability to improve and sustain profitability while maintaining prudent financial metrics, including working capital ratios, coverage, and leverage, will also remain a key rating consideration.

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 (~90.97%), a UAE-based company, followed by Energy Petroleum Consultant Company (~8.99%), a Kuwait-based company, while the Directors collectively account for the residual shareholding (~0.04%). 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, whereas, Mr. M. Hani Abdul Kader B AlBakri serves as the CEO.