Hascol looks to raise Rs4b for expansion along CPEC
Will construct oil storage facility, open retail outlets
PHOTO: HASCOL
KARACHI:
Hascol Petroleum Limited is looking to raise close to Rs4 billion through the country’s stock market, seeking financing for upcoming as well as ongoing expansion projects.
Board of directors at the firm has approved the issuance of 24.13 million right shares to existing shareholders at Rs165 per share, which will help the company raise a total of Rs3.98 billion.
“The purpose of the rights Issue is to fund upcoming projects including development of storage facilities, retail outlets and lube oil and grease blending plant,” Company Secretary Zeeshan Ul Haq said in a notification to the Pakistan Stock Exchange on Thursday.
Hascol to expand operations to Balochistan
He maintained funds received will be used towards the completion of the projects in expansion of the Company, which will increase “breakup value of the company and will also improve the debt equity ratio.”
The right issue size is 20% of existing capital i.e. 20 shares for every 100 shares held with the shareholders.
The company share price dropped 1.67%, or Rs5.02, to Rs295.15 with a volume of 392,900 shares on Thursday.
This would be the second time the firm would raise funds through the equity market for expansion. Earlier, it raised Rs1.41 billion through an initial public offering of 25 million shares in March 2014.
The company has emerged as the first major oil firm to have planned and construct an oil storage facility near the strategic Gwadar Port, Balochistan and open retail outlets along the China-Pakistan Economic Corridor (CPEC).
Earlier in March 2017, the firm entered into a lease agreement with Byco Petroleum Pakistan Limited for construction of the storage facility at Mouza Kund in the province. The storage facility is designed to cater to a total capacity of 36,000 tons, comprising 18,000 tons of high speed diesel and 18,000 tons of furnace oil, which may be sold to bulk consumers, including power plants.
Hascol’s three-month profit dips to Rs399 million
Once completed, this storage facility will be Hascol’s 10th oil storage unit in the country, it was learnt.
Besides, the company has a strategic licence agreement with FUCHS Oil Middle East Limited (FOMEL), an affiliate of FUCHS Petrolub SE-Germany, to represent the FUCHS lube brand in Pakistan. Pakistan has become a lucrative market for oil sales since low oil prices at international markets has created additional demand for the fuel, especially from top gear growth in car population. Besides, their profit margins have also gone in recent times.
Published in The Express Tribune, September 15th, 2017.
Hascol Petroleum Limited is looking to raise close to Rs4 billion through the country’s stock market, seeking financing for upcoming as well as ongoing expansion projects.
Board of directors at the firm has approved the issuance of 24.13 million right shares to existing shareholders at Rs165 per share, which will help the company raise a total of Rs3.98 billion.
“The purpose of the rights Issue is to fund upcoming projects including development of storage facilities, retail outlets and lube oil and grease blending plant,” Company Secretary Zeeshan Ul Haq said in a notification to the Pakistan Stock Exchange on Thursday.
Hascol to expand operations to Balochistan
He maintained funds received will be used towards the completion of the projects in expansion of the Company, which will increase “breakup value of the company and will also improve the debt equity ratio.”
The right issue size is 20% of existing capital i.e. 20 shares for every 100 shares held with the shareholders.
The company share price dropped 1.67%, or Rs5.02, to Rs295.15 with a volume of 392,900 shares on Thursday.
This would be the second time the firm would raise funds through the equity market for expansion. Earlier, it raised Rs1.41 billion through an initial public offering of 25 million shares in March 2014.
The company has emerged as the first major oil firm to have planned and construct an oil storage facility near the strategic Gwadar Port, Balochistan and open retail outlets along the China-Pakistan Economic Corridor (CPEC).
Earlier in March 2017, the firm entered into a lease agreement with Byco Petroleum Pakistan Limited for construction of the storage facility at Mouza Kund in the province. The storage facility is designed to cater to a total capacity of 36,000 tons, comprising 18,000 tons of high speed diesel and 18,000 tons of furnace oil, which may be sold to bulk consumers, including power plants.
Hascol’s three-month profit dips to Rs399 million
Once completed, this storage facility will be Hascol’s 10th oil storage unit in the country, it was learnt.
Besides, the company has a strategic licence agreement with FUCHS Oil Middle East Limited (FOMEL), an affiliate of FUCHS Petrolub SE-Germany, to represent the FUCHS lube brand in Pakistan. Pakistan has become a lucrative market for oil sales since low oil prices at international markets has created additional demand for the fuel, especially from top gear growth in car population. Besides, their profit margins have also gone in recent times.
Published in The Express Tribune, September 15th, 2017.