UAE-Based Energy Group, Vitol Dubai Limited, has planned to buy 10 percent shares of Hascol Petroleum Limited, which will increase its overall shareholding in the Pakistani Oil Marketing Company from 15 percent to 25 percent, informed Zeeshan Ul Haq, Company Secretary of Hascol Petroleum Limited.
Dubai Vitol and the management of Hascol Petroleum Limited signed an agreement earlier in February 2016. According to that, UAE-based energy group could enhance its ownership in the Pakistani company by exercising its “Call option”.
In February 2016, Dubai Vitol bought 15 percent stakes of Hascol Petroleum Limited at a cost of $28.1 million, which is equal to 18.1 million shares of the company at prices of Rs. 162 per share. The transaction of the new shares will be culminated by the end of February 2017 with possible inflows of nearly $20 million in FDI in Pakistan.
Vitol Dubai Limited is a subsidiary of Vitol Holding B.V. It is an oil marketing company and commodities trader. Incorporated in 2001 after the deregulation of petroleum sector, Hascol is considered as the fourth largest OMC in Pakistan with more than 300 retail outlets operating in all four provinces and Azad Kashmir.
The company grew its business tremendously to make a record annual profit of Rs 1.13 billion in 2015, five years after it suffered financial losses of Rs 275 million in 2010. During these five years, it expanded its business throughout the country which included acquiring outlets of other OMCs and setting up new ones in different cities of the country.
Hascol Petroleum Limited is buying, storing and selling petroleum products, such as fuel, high speed diesel, gasoline, Jet A-1, liquefied petroleum gas and lubricants. The company plans to set up Hascol Terminals Limited with Vitol to have 200,000 tons of storage at Port Qasim in the coming future.