Lahore: Euro Oil (Private) Limited has received a preliminary rating for its planned short-term sukuk issuance, valued at PKR 2 billion, aimed at bolstering its working capital. The company, which has a notable market presence in Lahore and other major cities across Punjab, is engaged in expanding its infrastructure and enhancing its supply chain through strategic partnerships.
According to The Pakistan Credit Rating Agency Limited, Euro Oil benefits from the expertise of its key sponsors and a strategic equity stake held by global energy trader BB Energy. This partnership has been pivotal in optimizing the company's supply chain and has been further strengthened by a distribution agreement with PETRONAS for marketing premium lubricants across Pakistan. In the fiscal year 2025, Euro Oil reported a 15% revenue increase, reaching PKR 61,487 million, driven by significant sales of high-speed diesel and premier motor gasoline.
The company plans to expand its infrastructure in Sahiwal and Daulatpur to support its growth trajectory. Euro Oil's management is projecting a revenue of approximately PKR 66,998 million and a net profit of PKR 967 million by the end of fiscal year 2026. The sukuk will be secured by a conventional ranking charge on current assets, with additional credit enhancement features to mitigate risk. The financial management of Euro Oil remains focused on maintaining a favorable working capital cycle through strategic supply agreements.
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