Karachi September 5 2022: HASCOL Petroleum Limited volumetric sales growth turnaround in August 2022 with positive growth after a period 13 months that breaks record of last six years, revealed by OCAC.
HASCOL petroleum sold 27.77 k tons of petroleum products in August 2022. The sales were 78.2 percent when compared with the same month last year and 29.5 percent higher when compared with the sales of previous month.
The previous time HASCOL posted this much growth was in June 2016, according to OCAC data. At that time company market share was 6.2 percent which was increased gradually to 15 percent in April 2018 before declining to hit a low of 0.4 percent in May 2022.
"Company has Rs. 68.3 billion in accumulated losses at 31st December 2021", according to Annual Accounts
In 2021, Hascol went through a transition phase focusing on aspects that it could control pre-finalization of restructuring such as optimal/efficient buying of product, operating costs, debt collections resulting in transitioning the company from a EBITDA negative company in 2020 to one with positive EBITDA in 2021 even at low volumes through its core business of marketing of petroleum products. Credit support from Company’s single largest shareholder helped the company continue its business operations and survive despite shortage of working capital.
In order to address the liquidity issues, the company has carved out a Restructuring plan for covering the total outstanding loans of Rs. 54.247 Billion due to banks and financial institutions, which will not only overcome these issues but ensure that the Company regains its lost market share and profitability.
“Though the plan has not been finalized, the company has discussed the plan with the banks and now believe there is a way forward with restructuring of the PKR 54bn debt with the banks and the major shareholders and the company.” says Company Chief Executive Officer Aqeel Ahmad Khan.
“The board firmly believes that subject to the approval of restructuring plan with major banks the Company will have sufficient liquidity to continue its operations and achieve its potential.” says company Chairman Alan Duncan.
Hascol Petroleum Limited was incorporated in Pakistan as a private limited company on March 28, 2001. On September 12, 2007 the Company was converted into a public unlisted company. The Company is engaged in the business of procurement, storage and marketing of petroleum, chemicals, LPG and related products. The Company obtained oil marketing license from Ministry of Petroleum and Natural Resources in the year 2005 and acquired assets of LPG licensed company in the year 2018.