Jinn Petroleum (Pvt.) Limited ('Jinn Petroleum' or 'the Company') was incorporated in 2016 under the repealed Companies Act, 2017 as a private limited concern.

Mr.Aamir Raza Agha (late) and Mr. Asad Siddique held significant experience in oil marketing segment in the local and international markets. In 2016, they ventured into PoL marketing and selling business after obtaining OGRA's permission to setup an OMC, titled as Jinn Petroleum. 

The Company is engaged in the business of marketing and selling of POL products through a retail network of ~98 retail outlets with prominent presence across Punjab. The Company owns two storage facilities at HUB (3,845MT) and Sahiwal (9,300MT, where 6,800MT has recently commissioned). While two storage facilities at Daulatpur and Sar e Norang, with a combined storage capacity of ~915MT, are expected to become operational by FY26. The Company has hospitality agreements at Kemari, Port Qasim, MehmoodKot, Shikarpur, Machike, and Gatti to enhance their geographical presence.

Initially, the Company's ownership was divided between Mr. Aamir (late) and Mr. Asad's families, where Mr. Ashar Siddique held a major stake of ~43.2%. Latey, Mr. Syed Saeed Athar and his family has acquired ~25% in the Company. While, Mr. Ashar holds ~41% and late Mr. Aamir's family holds a cumulative ~34% stake in the Company. 

The second generation of the founders has been inducted to head the Company. Lately, Mr Syed Saeed Athar and his family, with a considerable operational history in the local market, has acquired ~25% in the Company.

The sponsors had been associated with POL mid-stream and down-stream businesses at notable positons for a considerable span of time.

The Sponsors hold an adequate financial strength and are committed to support the Company, if needs be.

The overall control of the Company lies with an eight-member Board of Directors (BoD), comprising seven Non-Executive Directors and one Executive Director, the CEO, dominated by the Sponsoring family. The Board holds considerable diversity, however, a room for independence exists to streamline the governance framework.

Mr. Asad Azhar Siddique chairs the BoD and has been associated with the Company since inception. He holds an overall experience of more than four decades across the POL supply chain. Ms. Saima Agha, the Vice Chairman, has been associated with the BoD for five years. She has an overall experience of two decades. The profile of all other members is satisfactory with rich experience. 

The BoD is assisted by three committees: i) Audit & Risk, ii) HR & Rumeneration, and iii) Operations & Strategy. The meetings of these committees are held as per need and minutes are adequately maintained. 

The Company's appointed external auditor, M/S Tariq Ghani & Co. has issued an unqualified opinion on the financial statements of FY24. The firm is QCR rated and on SBP's panel in category "B". Previously, M/S. Ilyas Saeed & Co. was the appointed external auditor of the Company. The firm was QCR rated and on SBP's panel in category "A".

Operations are segregated into four departments: i) Engineering, Operations & HSE ii) Marketing & Supply Chain, iii) Finance, IT iv) HR, Admin & Security. Each departmental Head reports to the Chief Executive Officer (CEO), who then makes pertinent decisions. Post the recent structural transition, the decision making process is expected to culminate at the BoD level. 

Mr. Ashar Siddiqui, the CEO, holds considerable experience in the oil & gas supply chain along with engineering consultancy and the pharmaceutical industry. Mr. Irfan Qureshi, former MD PSO, is an advisor to Jinn Petroleum, has an extensive experience of over four decades in oil and gas sector. The CEO is assisted by a team of qualified professionals.

The management is assisted by Management Development Committee and a Cross-functional Team. Management Development Committee is chaired by the BoDs Chairmann and comprises five members. Cross Functional Team is chaired by the CEO and comprises three members. Both committees meet at regular intervals or whenever the need arises.

The Company has deployed SAP Business - One ERP solution - which is operational by different functions/departments and all business activities. The system is updated on a real-time basis. This enables to track and review the reports pertaining to location-wise POL procurement and consumption, finance cost break-up, legal and professional charges.

The Company has outsourced the internal audit function to Kreston Hyder Bhimji & Company. However, an in-house team monitor day to day operational challenges, if any. This partnership enhances risk management, control, and governance processes, as well as improves business practices by establishing standard operating procedures (SOPs).

Pakistan heavily depends on imports for its energy requirements due to limited domestic PoL production. A substantial increase in PoL import costs was witnessed due to global challenges. This along with rupee depreciation further impacted the local overall cost structure. During FY24, the demand for POL products declined by ~9% due to macroeconomic pressures. Transportation and Power sectors remain the main consumers, accounting for ~89% of the total demand. Despite having fixed margins, OMCs bear the impact of high working capital costs, which have risen sharply due to the aforementioned factors. This requires vigilance over the short to medium term for the OMC sector.

The Company holds a market share of less than ~1% (in terms of MS & HSD sale) during FY24.

The Company generates revenue from the marketing business of POL Products. During FY24, total revenue grew ~45.5% and was reported at ~PKR 57.6bln (FY23: ~PKR 39.5bln). The increase is mainly attributed to increased volumes of POL products mainly from HSD. However, increased prices also adds support. During 6MFY25, total revenue was reported at ~PKR 21.5bln (6MFY24: ~PKR 27.3bln). Going forward, revenues of the Company are expected to remain afloat due to the inflationary trend.

During FY24, the Company reported a gross profit of ~PKR 1.6bln (FY23: ~PKR 1.4bln). The cost of goods sold surged ~46.8% and was reported at ~PKR 56bln (FY23: ~PKR 38bln). Resultantly, the gross profit margin was reduced to ~2.8% (FY23: ~3.7%). Similarly, the operating profit margin reduced and stood at ~1.5% (FY23: ~1.8%). On the net level, exchange gain and gain from the disposal of TFCs supported the Company's net margin (FY24: ~1%, FY23: ~0.9%), while the finance cost posted managable growth. During 6MFY25, the Company reported a gross margin of ~3.4% (6MFY24: ~2.7%). The operating and net profit margin stood at ~1.8% (6MFY24: ~1.3%) and ~1.1% (6MFY24: ~0.5%), respectively. Looking ahead, margins are expected to remain stable.

The Company is following an aggressive expansion strategy and plans to include new storage (Daulatpur and Sar e Norang) allowing an increased retail network nationwide; funded by a mix of debt and equity.

Working capital requirements are met by combination of suppliers credit and bank borrowings. Net working capital days stood at 9 days (FY23: 5 days), owing to stable inventory held days (FY24: 24 days, FY23: 24 days). Trade payable days stood at 16 days (FY23: 20 days). Trade receivables days stood at 2 days (FY23: 1 day). The Company have managed to build a borrowing cushion on its balance sheet. As of 6MFY25, net working capital days stood at ~13 days (6MFY24: ~7 days), due to an increase in inventory days reported at ~29 days (6MFY24: ~16 days). Going forward, maintaining a healthy working capital cycle remains crucial with a considerable borrowing cushion.

As of FY24, EBITDA increased ~67.5% and was reported at ~PKR 1.4bln (FY23: ~PKR 824mln), due to increased profits. Similarly, FCFO stood at ~PKR 886mln (FY23: ~PKR 680mln) posting a growth of ~ 30.9%. Finance cost reported at ~PKR 144mln (FY23: ~PKR 167mln). Resultantly, the interest coverage ratio of the Company improved to 6.1x (FY23: 4.8x). Going forward, it is important to sustain the cashflows and take prudent measure to manage the finance cost.

As of FY24, the debt-to-equity ratio stood at ~16.8% (FY23: ~41.9%), owing to reduced borrowings. Total borrowings, comprising entirely short term that was obtained to manage the working capital, reduced by ~49% to ~PKR 524mln (FY23: ~PKR 1bln). Total equity posts an increase of ~ 81% to ~PKR 2.6bln (FY23: ~PKR 1.4bln), owing to an equity injection of ~PKR 605mln. Revaluation reserve stood at ~PKR 455mln (FY23: ~PKR 573mln), while accumulated profits grew to ~PKR 1bln (FY23: ~PKR 355mln). As of 6MFY25, shareholders' equity stood at ~PKR 2.8bln (6MFY24: ~PKR 1.5bln) with total borrowings reported at nil (6MMFY24: ~PKR 1.2bln). Going forward, the Company's capital structure is expected to remain adequate.