HASCOL PETROLEUM LIMITED

Transcription

1 HASCOL PETROLEUM LIMITED 0

2 Introduction Directors Profile Management Team Hascol Petroleum Limited Table of Contents Pakistan Market Overview of POL Products Country Oil Storage Infrastructure Supply Chain Infrastructure Retail Network Product Volumes Major Customers Lubricant Business Local Supplies / Imports IT Infrastructure Strategic Equity Investment in Pakistan Refinery Limited Major Current Year Developments Performance of the Company through Listing Financial Highlights Share Performance ` 1

3 INTRODUCTION Hascol Petroleum Limited (HPL) was incorporated in 2001 under the Companies Ordinance, 1984 primarily to take advantage of the petroleum sector deregulation and undertake a program for owning, leasing and renting oil storage facilities as well as importing petroleum products for its own account. In February 2005 HPL was granted a full marketing license by the Government of Pakistan and since then the Company has been engaged in developing a retail network and storage facilities under the Hascol brand. Listed on the stock exchange in May In July 2015, JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the entity ratings of Hascol Petroleum Limited (HPL) at A+/A-1 (Single A Plus/A-One). Outlook on the assigned ratings is Stable. The Directors and sponsors of the company have decades of multinational companies experience in Oil Trading, Retail Development, Marketing & Supply Chain Management. 2

4 DIRECTORS PROFILE Name Mr. Mumtaz Hasan Khan (Chairman & Chief Executive Officer) Brief Profile Mr. Mumtaz Hasan Khan has over 50 year of experience within the oil industry. He started his career with Burmah Shell Oil Storage and Distribution Company in May In January 1976 Mr. Mumtaz resigned from the post of International Sales Manager to join Pakistan Services Limited as Managing Director. Pakistan Services Limited was the owning company of four Intercontinental Hotel (now known as Pearl Continental Hotel) in Pakistan at that time. In 1980 Mr. Mumtaz left Pakistan Services Limited and moved to London. He established Hascombe Limited, which started trading in Crude Oil and Petroleum Products. Hascombe bought petroleum product from Middle Eastern sources and sold to international trading companies like Shell and Elf. Hascombe was also a major supplier of petroleum products to Pakistan during 1991 till In 2005 Hascol was granted an oil marketing license by the government of Pakistan in Pakistan. Hascol has established a network of 314 Petrol Pumps all across Pakistan including Azad Jamu and Kashmir. Mr. Mumtaz Hasan Khan is currently also serving as Chairman of Sigma Motors (Sole distributor of Land Rover vehicles in Pakistan).He is a Trustee of the Foundation of Museum of Modern Art (FOMMA) located in Karachi and the member of the Expert Energy Group which prepared Pakistan s first Integrated Energy Plan in Mr. Farooq Rahmatullah Mr. Rahmatullah is law graduate from the University of Peshawar. He joined Burmah Shell and Oil Distribution Company in Mr. Rahmatullah worked in various capacities with the organization i.e. Chemical, Human Resource, Marketing, Supply, Distribution and Retail. In 1994 Mr. Rahmatullah was transferred to Shell International London as Manager Business Strategy Division. He looked after various portfolios covering 140 countries. In 1998 he was transferred back to Pakistan as Head of Operations Shell Pakistan. Mr. Rahmatullah was also looking after Middle East and South Asia (MESA).In 2001 he was appointed managing director Shell Pakistan Limited a post he retired from in June Mr. Rahmatullah is credited with being the founding member of PAPCO (Pak Arab Pipeline Company limited). He has also served as the Director General of Civil Aviation Authority, Chairman of the Oil and Gas Development Authority, Chairman of LEADs. Since 2005 he has been chairman of the Pakistan Refinery Limited. He is currently serving on the Board of Director of Faysal Bank Limited, Society of Sustainable Development, and Resource Development Committee for the Agha Khan Hospital. He is also the Group Founding Member of the Pakistan Human Development Fund and a member of National Commission of Government Reform and Member of the Pakistan stone Development Company. He is the Chairman of Pakistan Refinery Limited and Non-Executive Director of Faysal Bank Limited. 3

5 Name Mr. Najmus Saquib Hameed Hascol Petroleum Limited Directors Profile Brief Profile Mr. Najmus Saquib Hameed is the honorary Vice Chairman and C.E.O of Layton Rahmatullah Benevolent Trust (LRBT). LRBT is one of the largest charitable organizations in Pakistan providing free eye care to over 2 million patients through a network of 17 hospitals annually. He has over 47 year of experience in Senior Management position with multinational organization such as Unilever and Pakistan Tobacco where he retired as Chairman of the Company. Mr. Najmus Saquib holds a Master in International Relations and was a gold medalist at Institute of Business Administration (IBA). He has served as Chairman of the Cigarette Manufacturers Association and past Chairman Board of Governor at the Indus Valley School of Art and Architecture, Karachi. Mr. Najmus Saquib Hameed is currently serving on the board of NIB Bank Limited and Sigma Motors Limited. Mr. Sohail Hasan Mr. Sohail is a Chartered Accountant and a member of the Institute of Chartered Accountants in England and Wales and the Institute of Chartered Accountants of Pakistan. He was a partner in a leading accounting firm A.F.Ferguson & Co for over 35 years and has also served as its senior partner. Mr. Sohail has served as the member of the Provisional Financial Commission Punjab and is currently a member of the Corporate Law Review Commission of Pakistan. He is also a Non-Executive Director of Habib Metropolitan Bank Limited. Mr. Liaquat Ali Mr. Liaquat Ali is a Chartered Accountant by profession and a fellow member of the Institute of Charted Accountants of Pakistan (ICAP). He has over 23 years of experience in leasing and investment banking field and has completed numerous transactions including restructuring of companies, merger and acquisition. Mr. Liaquat Ali is the Managing Partner of Liaquat Zaman, Chartered Accountants. He is also a member of the benevolent fund committee of ICAP. In addition to this, he is currently serving on the Board of Directors of Sindh Microfinance Bank Limited, Sigma Motors Limited and Marshal Gas (Private) Limited. 4

6 Directors Profile Name Mr. Saleem Butt (Executive Director) Brief Profile Mr. Saleem Butt has achieved a diversified 22 year career in Finance, Corporate Affairs, Supply Chain, Sales, Management, Human Resource, I.T and ERP implementation. Mr. Butt started to work as a Chartered Accountant for a firm which is now a part of Price Waterhouse Coopers. He then worked with various Shell Group of companies in Pakistan and overseas for 14 years. He was then offered a position with Emaar Pakistan a subsidiary of Emaar PJSC, U.A.E as Chief Operating Officer (COO). Mr. Butt is a Chartered Accountant and holds a Bachelor Degree in Commerce from the University of Karachi. He received his fellowship from the Institute of Chartered Accountants of Pakistan in He also serves as non-executive director on the boards of Pakistan Refinery Limited, TRG Pakistan Limited and Sigma Motors Limited. Mr. Abdul Aziz Khalid Mr. Abdul Aziz Khalid has joined the board of the Company as nominee director of Vitol Dubai Limited. Mr. Aziz is working as Business Development Director in Vitol. He possesses a vast experience as being affiliated with oil industry especially in Middle East and had worked for renowned companies such as Libyan Emirates Oil Refining Company and Al Ghurair. Mr. Aziz holds a CPA from Australia and completed his Bachelors from Griffith University. 5

7 Name Mr. Zafar Munshi Hascol Petroleum Limited Management Team Brief Profile Mr. Zafar Munshi currently holding the position of General Manager Marketing and Retail is among the senior most retailer in the Oil sector. Mr. Zafar Munshi has been associated with the industry for around 21 years with vast experience in development of retail outlets, sales and marketing. He is been associated with Hascol Petroleum Limited since its establishment. Mr. Aqeel Ahmed Khan Mr. Aqeel Ahmed Khan is General Manager Marketing and Logistics. He is an Oil industry professional with experience of over fifteen years in the areas of supply chain, marketing & sales, operations, commercial and business development. Rated as one of the best individuals in Attock Group of Companies. Heading the Marketing & Sales, Supply Chain, Technical, Operations and Procurement departments of Attock Petroleum Ltd. Mr. Muhammad Ali Ansari Having 10 years of experience to his credit, Mr. Muhammad Ali Ansari is General Manager Operational Finance at Hascol Petroleum Limited. He is a Chartered Accountant by profession and has been associated with Hascol since December

8 Name Mr. Irfan Qureshi Hascol Petroleum Limited Management Team Brief Profile Mr. Irfan Qureshi is the Chief of Public Affairs at Hascol and has experience of more than 35 years in the Petroleum industry. He took over as Chief of Public Affairs in Hascol. Along with performing core responsibilities of Public Affairs, he is also responsible for managing Media Relations portfolio from April He started his career with Chevron and served on various positions where he dealt with Policy and Public Affairs, Band Marketing, Management and Research. Later, he served as Managing Director of PSO from 2009 to 2011 and also with a Multinational Telecommunications company as Director Marketing and External Affairs. Mr. Shameem Raza Naqvi Mr. Shameem Raza Naqvi is a seasoned petroleum industry expert with more than 34 years of experience in the petroleum industry. He possesses around 30 years of diversified refinery experience in PRL. Prior to joining to Hascol Petroleum Limited, Mr. Naqvi was associated with a reputable OMC for approximately 3 years. Mr. Syed Pervez Yusoof Mr. Yusoof has been associated for more than thirty seven (37) years in the downstream sector of petroleum industry in various capacities. Prior to joining Hascol, he has worked with OIL COMPANIES ADVISORY COMMITTEE (OCAC) for 12 years and his last assignment at OCAC was Secretary General for four (4) years. Mr. Yusoof have also worked for Pakistan State Oil Company Limited (PSOCL) for more than twenty six (26) years in different departments and his last position was Deputy General Manager (DGM) Supplies and his assignment was to arrange all imports of deficit products in the country along with POL products procurement from local refineries. Import tender documents and term contract finalization was also managed by Mr. Yusoof. At Hascol Petroleum Limited (HPL), Mr. Yusoof is entrusted to arrange product requirement of the company through imports and local refineries. Additionally, Mr. Yusoof has been assigned to develop new business like coal and LPG marketing. 7

9 Name Mr. Yasin Haider Rizvi Hascol Petroleum Limited Management Team Brief Profile Mr. Yasin Haider Rizvi (a qualified Chemical Engineer) is Chief Operating Officer Lubricants. He has got 40 years of multifaceted and diversified experience in Manufacturing, Procurement, Sales / Marketing, Product Engineering and Technical Sales / Services of Lubricants, lubricants development, Base Oils selection, base oils and additives imports and PVC, Caustic Soda, HCL and PVC Products. Retail network quality testing of fuels, fuels additization at terminals & Special fluids segment growth. Prior to joining Hascol, he was working as Vice President direct sales and technical services & manager human resource & administration at Total Oil Pakistan Limited. He had also worked with reputable companies such as Caltex Oil (Pakistan) Limited, Chevron Al-Bakri Lubcricants Company LLC Saudi Arabia, Pakistan PVC Limited & Electro Cable Industries (Lahore). Mr. Shah M Saad Husain Mr. Shah M Saad Husain is CHRO & Head Corporate Planning. He has 38 years leadership and senior management experience in leading multinational and private sector organizations, including British Petroleum, BHP (now BHP Billiton), PARCO, Habib Group, PIDC, having worked as MD/Country GM. Managed projects in all phases: from grass roots concept to engineering studies to feasibility to bankable documents to construction to managing operations. Excellent experience of HR, Organizational Restructuring and Optimization, Marketing, Business Development, Corporate Planning, Company Operations, External Affairs, CSR, Administration and Joint Ventures. Mr. Imran Jawed Mr. Imran Jawed is Head of Commercial Fuels at Hascol Petroleum Limited, having a rich experience of more than 10 years of marketing, supply chain & logistics. His diversified experience ranges from IPP s, CPP s, Vessel/ port bunkering, Export to Afghanistan, General industry and on special projects. Prior to Hascol Petroleum Limited, Mr. Jawed was associated with Overseas Oil Trading Company and Admore Gas Limited. 8

10 Name Mr. Zeeshan Ul Haq Hascol Petroleum Limited Management Team Brief Profile Mr. Zeeshan Ul Haq is the Company Secretary at Hascol Petroleum Limited, having a rich experience of over 13 years of Corporate and Legal Affiars. Prior to joining Hascol, he had worked for organizations like Byco Petroleum Pakistan Limited, Karachi Stock Exchange Limited, Central Depository Company of Pakistan and Karachi International Container Terminal Limited. He holds an MBA degree in Finance from Hamdard University and is also a member of the Association of Chartered Certified Accountants (ACCA) and the Institute of Corporate Secretaries of Pakistan (ICSP). Mr. Muhammad Kashif Muhammad Kashif has 18 years of experience in Information Technology, Project Management, Business Administration and Management Information System. Currently, Mohammad Kashif is jointly leading the project of Oracle JD Edwards Enterprise One 9.0 implementation at Hascol Petroleum Limited and looking after the entire network infrastructure as well. Mr. Aamir Butt Mr. Aamir Butt is General Manager Logistics and a seasoned Industry professional. He is Masters in Mechanical Engineering with 20 years of diversified experience in Fuel Supply Chain. He started his professional career with Chevron Pakistan Limited (formerly Caltex Oil (Pakistan) Limited) in 1996 and served in both Domestic and International assignments. His last assignment before joining Hascol Petroleum Limited was that he was on secondment from Total Parco Marketing Limited (formerly Chevron Pakistan Limited) to Oil Companies Advisory Council since September 2011 as Secretary General OCAC. 9

11 COUNTRY S TOTAL PRODUCTION OF MAIN POL PRODUCTS FOR THE YEAR

12 COUNTRY S TOTAL IMPORTS OF POL PRODUCTS FOR THE YEAR

13 DEFICIT MET THROUGH IMPORTS 12

14 MAJOR OMC s MARKET SHARE (MS, HSD & HSFO) Name of Company Pakistan State Oil (PSO) Shell Pakistan Ltd (SPL) Attock Petroleum Ltd (APL) Hascol Petroleum Ltd (Hascol) Total Parco Marketing Ltd (TPML) Total Parco Pakistan Ltd (TPPL) Byco Petroleum Pakistan Ltd (BYCO) Overall Market Share (%) from Jul-2015 to Jun Pakistan State Oil (PSO) Shell Pakistan Ltd (SPL) Attock Petroleum Ltd (APL) Hascol Petroleum Ltd (Hascol) Total Parco Marketing Ltd (TPML) Total Parco Pakistan Ltd (TPPL) Byco Petroleum Pakistan Ltd (BYCO) The market share of Hascol Petroleum Limited as at August 31, 2016 is 7.00%. Source: Oil Companies Advisory Council 13

15 Country Oil Storage Infrastructure 14

16 Supply Chain Infrastructure HPL has developed a well-managed supply chain infrastructure through which its products are transferred to all parts of the country. The Company has also set up a fully integrated import supply chain system at both Keamari and Port Qasim and has already entered into the import market and import cargos of Fuel Oil, Motor Gasoline and High Speed Diesel on continuous basis to cater the demands of their clients. 15

17 Port Qasim, Karachi Sindh (Leased) HPL has long term storage agreement with VTT-Port Qasim (Pvt.) Ltd. Hascol Petroleum Limited Supply Chain Infrastructure-Strategically Placed Storage Facilities The Site is located opposite to PAPCO terminal and adjacent to Bakri Terminal on 4 acre land. The total storage capacity is 40,000 MT of HSD. 16

18 Supply Chain Infrastructure-Strategically Placed Storage Facilities Al-Abbass Terminal Keamari, Karachi (Leased) HPL has an storage agreement with Al-Abbass Terminal. Al-Abbass Terminal is located opposite to PSO terminal B and is connected to BOP II & BOP III (to receive imported tankers of PMG) & southern refineries (NRL and PRL). Storage capacity at Al-Abbass Terminal, Keamari is 16,000 MT of PMG. ZY Bulk Terminal - Keamari, Karachi (Leased) HPL has a long term lease agreement with ZY Bulk Terminal at Keamari, Karachi. The total Storage capacity of the terminal is approximately 30,000 MT out of which 12,000 MT of HSD (First Phase) has been completed and commissioned. The balance 18,000 MT (comprising of 12,000 MT of PMG and 6,000 MT of HSD) will be completed and commissioned by end of

19 Daulatpur, Sindh: (Owned) Total storage capacity at Daulatpur is 6,200 MT comprising 2,200 MT of PMG and 4,000 MT of HSD. Shikarpur, Sindh: (Owned) Shikarpur storage facility is located opposite to PARCO pumping station No.3 on Indus Highway N-55, at Shikarpur. Total storage capacity of Shikarpur facility is 8,750 MT comprising 2,750 MT of PMG and 6,000 MT of HSD. The Installation is connected to PARCO Terminal Station via 8 inch receipt pipeline. Hascol Petroleum Limited Supply Chain Infrastructure-Strategically Placed Storage Facilities 18

20 Supply Chain Infrastructure-Strategically Placed Storage Facilities Mehmoodkot, Punjab: (Owned) HPL is developing Storage facility at Mehmoodkot, Muzaffargarh located on PARCO Refinery link Road. This installation will have a total capacity of 13,500 MT comprising 4,500 MT of PMG and 9,000 MT of HSD and it will be connected to PARCO Refinery and PAPCO Cross Country Pipeline System. Current Status: Permission from OGRA & Explosive Department has been obtained. Construction and fabrication of installation is in full swing. Land (Approx. 5 acres) has already been acquired. The expected date of commissioning is end of

21 Supply Chain Infrastructure-Strategically Placed Storage Facilities Sahiwal, Punjab (Owned) Land measuring 6 Acres has been acquired for Sahiwal Depot. Construction work is in full swing. Initial Storage capacity is 4,000 MT comprising of 2,000 MT of PMG and 2,000 MT of HSD. The expected date of commissioning is December

22 Supply Chain Infrastructure-Strategically Placed Storage Facilities: Machike, Punjab : (Owned) Located opposite to PARCO Pumping Station no. 4, Mouza Dantpura, Machike, Tehsil & District Sheikhupura. Total storage capacity of the said facility is 9,500 MT comprising 3,500 MT of PMG and 6,000 MT of HSD. Machike II (Owned) Land of 15 Acres has been acquired for expansion with a total storage capacity of 50,200 MT comprising 25,200 MT of PMG and 25,000 MT of HSD. This Installation will be connected to PARCO TS-4 Station via proposed 12 inch Dia Pipeline which is 3 Km long. The expected date of commissioning is December

23 Supply Chain Infrastructure-Strategically Placed Storage Facilities Thallian, Punjab FWO has given land measuring 5 Acres in Oil Village at Chakri Interchange M-2. The total storage capacity will be 8,600 MT comprising 2,600 MT of PMG and 6,000 MT of HSD. We are the first Oil Marketing Company which will start construction of an Oil Depot at Thallian. Expected date of commissioning is June Amangarh, Naushera (Leased) HPL also has an agreement with Shams Lubricants for depot at Nawshera for the storage of HSD. The total storage capacity of Amangarh depot is 1,200 MT of HSD. 22

24 Supply Chain Infrastructure Gwadar Port Hascol has signed a MoU with China Overseas Ports Holding Company Pakistan (Pvt) Ltd. for supply of HSD and MS. 23

25 Overview of Storage Infrastructure PMG HSD HSFO Total All figures in M. Tons Operational (Owned & Leased) 29,450 70,200 30, ,650 Under Construction (Owned & Leased) 100, , , ,800 Total Storage Capacity 130, , , ,200 Overview of Under Construction Storage Facilities Location of Depot PMG HSD PMG HSD HSFO Mehmood Kot 4,500 9,000 Sahiwal 2,000 2,000 ZYCO Terminal 12,000 6,000 Machike Depot (B) 25,200 25,000 - Thallian 2,600 6,000 Port Qasim 50,000 50, ,000 Kotla Jam 4,500 9,000 The total Storage Capacity is 307,800 MT for under construction facilities. 24

26 Connectivity with the Pipe Line System Hascol Petroleum Limited Supply Chain Infrastructure-Throughput Arrangement Hascol petroleum is also a participant in White Oil Pipeline Project and has a throughput agreement with PAPCO (Pak-Arab Pipeline Company). HPL is also a participant in Mehmoodkot- Faisalabad- Machike (MFM) Pipe Line System and had tendered its share of line fill to PARCO. 25

27 Retail Network Hascol has a network of 359 retail outlets, that are spread all across Pakistan including Azad Jammu & Kashmir. The Company plans to increase these to 400 by the end of

28 Retail Network- Province Wise Province Number of Sites Punjab 183 Sindh 125 KPK 33 Baluchistan 11 AJK 7 Total

29 Product Volumes (Metric Tons) Description 2016 As at Sept 2016 Half Year 2016 January to December Budgeted Quantity in MT MS 432, , , , ,554 67,754 HSD 709, , , , , ,648 Furnace Oil 550, , , , , ,165 Lubricants ,357 4,222 3,876 2,075 LPG Total 1,697,033 1,359, 868,998 1,273, , ,881 *HPL is not effected by circular debt issue because HSFO supplies are secured through financial instruments. 28

30 List of Major Customers Commercial Business Liberty Power Tech Limited Nishat Power Limited Nishat Chunian Limited MCC Resource Development Kohinoor Energy Limited Lucky Cement Limited Thatta Cement Limited Power Cement Limited Bestway Cement Limited Artistic Milliners Limited US Apprael Limited Sapphire Power Limited Engro Eximp Limited Engro Fertilizer Limited Engro Foods Limited Haleeb Foods Limited Rafhan Maize Product Company Limited Orion Bunkers Soorty Enterprises Ghani Glass Limited Asain Foods Limited Thal Limited Port Qasim Authority Bhanero Textile Mills Limited Millat Tractors Limited 29

31 Lubricant Business The Company has a strategic agreement with FUCHS Lubricants, one of the largest global manufacturer of lubricants based in Germany. HPL is the only local Oil Marketing Company that has manufacturing and distribution rights of an international lubricant brand. 30

32 Lubricant Business The volume of Lubricant Sales as on December 31, 2015 was 4222 MT. As at 30 th September 2016, the Company has recorded sales of 3,567 MT. The Company plans to put up its own Lubricant and Grease Plant within the next two years. Land measuring 4 Acres has been acquired at Port Qasim. 31

33 Fuel Supply: (Local) HPL has established fuel supply arrangements, with all domestic refineries which includes: Pak-Arab Refinery, Attock Refinery, Pakistan Refinery Limited, Byco Petroleum Pakistan Limited and National Refinery. 32

34 Fuel Supply: (Imports) HPL has developed successful trading relationship with renowned international fuel suppliers. Major suppliers for HPL imports are : Vitol Trafigura Emirates National Oil Company - Singapore British Petroleum Shell International Trading Middle East Glencore Energy Socar Trading Singapore Mercuria Energy Trading Middle East DMCC TOTSA Total Oil Trading - Middle East Petrochina International Singapore (Pte) Limited 33

35 IT Infrastructure In 2013 HPL successfully implemented JD Edwards ERP software which is an integrated system comprising of the following six modules: Financial Procure to Pay Order to Cash Inventory Management Transportation Advance Pricing 34

36 HPL acquired 13.72% Class A Ordinary shares of PRL. Strategic Reasons for investment in shares of PRL: Hascol Petroleum Limited Strategic Equity Investment in Pakistan Refinery Limited (PRL) Location Refinery is located at the South of Port of Karachi which is an excellent location because of import of crude oil and export of finished product through sea. Pipeline Connectivity Refinery is connected with all the three Jetties at Keamari Port, Airport and Oil storage terminals at Keamari. PAPCO System Connectivity - Refinery is also connected with PAPCO Pipe line System that is used to transport the product from Karachi to upcountry. Only refinery Only refinery in which Hascol had an opportunity for strategic investment as all other refineries are closely held sponsors, Institutions and/ or Individuals. Future Expansion- Ideal refinery which has bright prospects for future expansion at a optimum cost because the requisite infrastructure already exists. 35

37 1. STRATEGIC INVESTMENT BY VITOL Hascol Petroleum Limited MAJOR CURRENT YEAR DEVELOPMENTS The Vitol Group is the world s largest independent energy trader. Its trading portfolio includes crude oil, oil products, LPG, LNG, natural gas, coal, electricity, agricultural products, metals and carbon emissions. Globally, Vitol trades over 5 million barrels of crude oil and oil products per day and revenues in 2014 were USD 270 billion. Vitol recorded a 15% percent increase in net income to USD 1.6 billion in Vitol Dubai Limited acquired 15% shareholding of HPL on 8 th April 2016 with an option to buy additional 10% within a year. With Vitol as shareholder, the Company will be able to import products competitively and at short notice. This will have a positive impact on the Company s volumes and profitability. Mr. Abdul Aziz Khalid, nominee of Vitol Dubai Limited has been appointed on the Board of the Company. 36

38 2. ISSUE OF SUKUK CERTIFICATES Hascol Petroleum Limited MAJOR CURRENT YEAR DEVELOPMENTS Hascol Petroleum Limited has successfully issued rated, listed and secured privately placed long term Islamic certificates (Sukuk) of PKR 2 billion during the quarter March The amount generated through the Sukuk has been partly utilized for prepayment of high cost debts of the Company and the balance amount will be utilized for the development of satellite depots / retail outlets. The Company is in the process of listing the Sukuk at the Over the Counter (OTC) market of Pakistan Stock Exchange. 37

39 3. MARGINS Hascol Petroleum Limited MAJOR CURRENT YEAR DEVELOPMENTS The Economic Coordination Committee has accorded approval on 7 th May 2016 for revision of margins of Oil Marketing Companies (OMCs) and Dealers on petroleum products. According to the recommendation of Ministry of Petroleum and Natural Resources, the margins are now linked to Consumer Price Index (CPI). The increase in the margins includes 6 paisas for MS Petrol and HSD for the OMCs; 8 paisas for MS and 7 paisas on HSD for the Dealers. The new margins will be applicable with effect from 1 st July 2016 onwards. This revision will resultantly increase profitability of the Company. Product OMC s Margin (Rs. per liter) Dealers Margin (Rs. per liter) Existing Revised Existing Revised MS HSD

40 MAJOR CURRENT YEAR DEVELOPMENTS 4.JOINT VENTURE WITH VITOL FOR STORAGE FACILITY AT PORT QASIM (HASCOL TERMINALS LIMITED) HPL has entered into a joint-venture with Vitol for development of a Storage Facility at Port Qasim, Karachi. The total storage capacity of the Facility will be approximately 200,000 MT on 22 acres land. The Facility will be commissioned in 1.5 years time. This Storage Facility will be connected to FOTCO (Jetty) and thereon will be supplying POL products across the country. 39

41 5. COMPANY OWN FLEET Hascol Petroleum Limited MAJOR CURRENT YEAR DEVELOPMENTS The Company is in the process of developing its own private fleet of oil tank lorries. As a pilot project, initially the Company will be making an investment of approx. PKR 380 million for 25 oil tank lorries with a payback period of around 4 years. This will be a profitable segment for the Company and will be beneficial for transporting Motor Spirit (MS) to various parts of the country and in particular cater the demand at Daulatpur Depot and Shikarpur Depot in Sindh. 40

42 PERFORMANCE OF THE COMPANY THROUGH LISTING PROJECTIONS AT THE TIME OF LISTING ACTUAL RESULTS ACHIEVED (Nine Months) Sales Gross Profit Profit After Taxation 60,956,912 67,213,712 74,317,023 1,331,445 1,458,265 1,599, , , ,543 Sales Gross Profit Profit After Taxation 99,061,496 94,065,297 92,732,553 2,036,795 2,756,122 3,236, ,057 1,133, ,821 41

43 Financial Highlights Budgeted Third Quarter Actual Actual Actual Volumes in MT 1,272,712 1,359,877 1,273, , ,881 (Rupees in 000) Sales - Gross 88,458,515 92,732,553 94,065,297 99,061,496 57,469,000 Cost of Sales 58,579,945 66,916,963 74,017,815 82,877,017 48,506,000 Gross Profit 3,025,767 3,236,916 2,756,122 2,036,795 1,360,160 Operating Profit 1,536,691 1,646,182 1,336,410 1,237, ,000 Profit after Taxation 996, ,821 1,133, , ,550 EPS Paid Up Capital 1,206,792 1,206,792 1,206, , ,000 42

44 Cash and stock dividend History Hascol Petroleum Limited Share Performance Period Cash Dividend Stock Dividend First Quarter - March 31, % - Second Quarter - June 30, % - Third Quarter - September 30, % - Year end - December 31, % Second Quarter - June 30, % 20% Final Dividend - December 31, % - Second Quarter - June 30, % - 43

45 Share Performance Overview of Stock Market Price of HPL Share Period Market Price Per Share (PKR) 30-Jun Sept Dec Mar Series1 30-Jun Sept Dec Mar June Sept Nov Total Market Capitalization as of Nov 15, 2016 PKR US Dollar 33.8 Billion 325 Million 44

46 Thank You 45