Hascol Petroleum Limited: Comprehensive Company Profile

Background

Overview

Hascol Petroleum Limited, established in 2001, is a prominent player in Pakistan's downstream oil and gas sector. The company specializes in the procurement, storage, and marketing of petroleum products, including high-speed diesel, gasoline, fuel oil, jet fuel (Jet A-1), liquefied petroleum gas (LPG), and lubricants.

Mission and Vision

• Vision: To become the leading energy marketing company in Pakistan through operational excellence, talent management, business diversification, and sustainable expansion.

• Mission: To gain recognition and leadership in the hydrocarbon and energy sectors by maximizing customer satisfaction and shareholder value through continuous improvement, high-quality human capital, appropriate technology, and adherence to the company's core values.

Industry Significance

Since obtaining its oil marketing license in 2005, Hascol has rapidly expanded its retail network, commissioning over 600 retail outlets across Pakistan and Azad Jammu and Kashmir. This extensive network positions Hascol as a key contributor to the nation's energy distribution infrastructure.

Key Strategic Focus

Core Objectives and Specialization

Hascol's strategic focus encompasses:

• Retail Network Expansion: Aggressively increasing the number of retail outlets to enhance market presence.

• Diversification: Entering new segments such as LPG marketing and chemical imports to broaden the product portfolio.

• Infrastructure Development: Investing in storage facilities and logistics to strengthen supply chain capabilities.

Key Technologies and Markets

• Lubricants: Hascol holds a strategic license agreement with FUCHS Middle East (FOMEL), an associate of FUCHS Petrolub based in Germany, to represent the brand in Pakistan.

• LPG Marketing: The company markets LPG through its retail network for the automotive sector, with plans to expand into domestic consumer markets.

• LNG Joint Venture: Hascol and Vitol have established a joint venture for marketing LNG in Pakistan, with Hascol holding a 30% share.

Financials and Funding

Funding History and Investors

• Initial Public Offering (IPO): Hascol was listed on the Pakistan Stock Exchange in 2014.

• Vitol Investment: In 2015, Vitol Dubai Limited acquired a 15% stake in Hascol, increasing it to 25% in 2016.

Financial Performance

• Revenue: In 2023, Hascol reported revenues of PKR 162.71 billion, a significant increase from PKR 70.97 billion in 2022.

• Net Income: The company faced a net loss of PKR 17.81 billion in 2023, compared to a loss of PKR 14.44 billion in 2022.

Pipeline Development

Product Development and Expansion

• Lube Blending Plant: Hascol is constructing a lube oil blending plant to enhance its lubricants business, aiming for completion in the near future.

• Storage Facilities: The company is expanding its storage capacity, including a joint venture with Vitol for a 200,000 metric ton storage facility at Port Qasim.

Technological Platform and Innovation

Proprietary Technologies and Methodologies

• Lubricants: Through its partnership with FUCHS, Hascol offers a range of high-quality lubricants tailored to various automotive and industrial applications.

• LPG and LNG Marketing: The company is leveraging its infrastructure to market LPG and plans to enter the LNG sector through its joint venture with Vitol.

Leadership Team

Executive Profiles

• Sir Alan Duncan, Chairman: Elected in September 2020, Sir Alan has extensive experience in the oil industry, including a tenure with Royal Dutch Shell, and has served as a UK government minister.

• Mr. Aqeel Ahmed Khan, CEO: With over 20 years in the oil industry, Mr. Khan has expertise in supply chain, sales, marketing, operations, and business development. Prior to Hascol, he was associated with Attock Petroleum Limited.

Board of Directors

• Mr. Farid Arshad Masood: Managing Director of Vitol Dubai since 2018, with experience in the Middle East, Pakistan, and Africa.

• Mr. Aamir Amin: Chartered Accountant with over two decades in finance and investment, currently CFO at National Investment Trust Limited.

• Mr. Mustafa Ashraf: Advocate of the Punjab High Court and former Member of the Federal Board of Revenue (FBR).

• Ms. Naheed Memon: CEO of Oracle Power, with a career spanning public service and private sectors in Pakistan and the UK.

• Mr. Aernout Boot: Energy and logistics executive with over 25 years of global experience in the oil and gas industry.

Leadership Changes

• Chairman Appointment: Sir Alan Duncan was elected Chairman in September 2020, succeeding the previous chairman.

• CEO Appointment: Mr. Aqeel Ahmed Khan assumed the role of CEO, bringing extensive industry experience to the position.

Competitor Profile

Market Insights and Dynamics

• Market Size and Growth: Pakistan's oil marketing sector is characterized by significant demand for petroleum products, driven by economic growth and increasing energy needs.

• Industry Trends: The sector is witnessing diversification into LPG and LNG, with companies expanding their product portfolios and infrastructure.

Competitor Analysis

• Pakistan State Oil (PSO): The largest oil marketing company in Pakistan, offering a wide range of petroleum products and services.

• Shell Pakistan: A major player with a strong retail network and focus on high-quality fuels and lubricants.

• Attock Petroleum Limited: Engages in the marketing of petroleum products and has a growing retail presence.

Strategic Collaborations and Partnerships

• Vitol Partnership: Vitol's investment and joint ventures with Hascol have strengthened the company's market position and infrastructure capabilities.