Karachi: Jinn Petroleum (Pvt.) Limited has retained its entity rating despite facing challenges in sales volumes and market share within Pakistan's oil marketing sector. The company, supported by experienced sponsors and strategic alliances, operates over 100 retail outlets, primarily in Punjab and Balochistan, and recently expanded its storage infrastructure.
According to The Pakistan Credit Rating Agency Limited, Jinn Petroleum holds a market share of approximately 1% in an industry dominated by major players such as Pakistan State Oil and Shell. While the overall oil marketing sector in Pakistan experienced growth in sales volumes in 2025, Jinn Petroleum saw an 18% decline in annual sales volumes in fiscal year 2025. This trend continued into the first half of fiscal year 2026, with Jinn Petroleum's volumes remaining steady compared to the same period last year.
The company's revenue decreased to PKR 37.8 billion in FY25 and PKR 18.9 billion in the first half of FY26, reflecting the competitive pressures in the sector. Despite this, operational efficiency remained stable with gross margins close to the industry average. Jinn Petroleum meets its working capital needs through internal cash generation and banking lines, with no long-term debt reported. The company is pursuing expansion strategies to increase storage capacity and retail footprint, aiming for geographic diversification.
The rating's stability is contingent on Jinn Petroleum's ability to execute its expansion plans, maintain margin improvements, and grow its market share. The competitive and regulated nature of the oil marketing sector in Pakistan, along with global oil price fluctuations, continue to pose challenges. Strengthening governance through independent board oversight is also deemed crucial for the company's growth.
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