Mumtaz Hasan Khan

Report
HASCOL PETROLEUM LIMITED –
A COMPANY ON GROWTH PATH
Oil Marketing Companies in Pakistan
PSO
Public Sector Enterprise
Listed company
Shell
Private Sector
Listed company
Attock Petroleum
Private Sector
Listed company
Chevron
Private Sector
Non-listed
TOTAL
Private Sector
Non-listed
Hascol
Private Sector
Non-listed
BYCO Marketing
Private Sector
Fully owned subsidiary of BYCO
OOTCL
Private Sector
Non-listed
Bakri
Private Sector
Non-listed
Zoom
Private Sector
Non-listed
Askar
Private Sector
Non-listed
Admore
Private Sector
Non-listed
Demand of Petroleum is Expected to Grow
at a Rapid Rate
• The projections show
that there is an ever
increasing demand
for petroleum
products
• With reduced
availability of
alternates like CNG
demand of
petroleum will grow
at a much rapid rate
Source : Pakistan Oil Report :by OCAC
Efficient Infrastructure is Critical for Petroleum
Business in Pakistan - Hascol is Present at all
Logistics Hub
65% Demand in North
Refined + Crude
ARL
HPL Storage Facilities
Tarujabba
Common User Facilities
Chaklala
Machike
Other OMCs Facilities
Gatti
Quetta
PARCO & Dhodak
Shershah
Shikarpur
Imports
90%
Mehmoodkot
Vehari
Refined product
Imports
45%
Port Qasim
90% Supply from South
Keamari
NRL, PRL &
BYCO
Local
55%
Local
10%
Hascol Petroleum - Introduction
Start of Operations
Year 2005
Number of commissioned
retail outlets
200
Products marketed by Hascol
Motor fuels (petrol, diesel),
consumer/industrial fuels (fuel oil,
kerosene, Jet) and lubricants (complete
range of motor and industrial lubricants)
Market Share (2012)
2%
Number of storage terminals
4
Common User storage and
handling facilities used
2
Our Board of Directors
Mr. Mumtaz Hasan Khan – Chairman & CEO
Mr. Khan has 47 years of Experience in the Oil industry.
Under his leadership Hascol Petroleum has been granted an
oil marketing license by Government of Pakistan. Mr. Khan is
also chairman of Sigma Motors. Mr. Khan was a member of
Energy Expert Group which prepared the first integrated
energy plan of the country.
Dr. Akhter Hasan Khan
Dr. Khan has retired as Secretary Planning, Government of
Pakistan. He has a distinguished academic record with
Masters in Public Administration from Harvard University and
PHD in Economics from Tufts University. He has served at
number of senior positions in Federal Government. He has
been on the boards of various public sector organizations.
Mr. Farooq Rahmatullah
Mr. Rahmatullah has experience of more than 45 years in oil
industry at both local and international level. He has served
as chairman of Shell Companies in Pakistan, Director
General of Civil Aviation Authority, chairman OGDC and
chairman of LEADS Pakistan. He is chairman of PRL and
director of Faysal Bank and Society for Sustainable
Development.
Mr. Najmus Saquib Hameed
Mr. Hameed is Hon. Vice Chairman and CEO of Layton
Rahmatulla Benevolent Trust (LRBT). He has over 47 years
experience in senior management positions in multinational
companies like Unilever and Pakistan Tobacco; from where
he retired as chairman of the company. He is currently on the
Board of NIB Bank and Sigma Motors Limited.
Mr. Liaquat Ali
Mr. Ali is Chartered Accountant by profession and is a Fellow
Member of ICAP. He has over 18 years of experience in in
leasing and investment banking. Presently, Mr. Ali is a
partner of Avais Hyder Liaquat Nauman (AHLN) a member
firm of RSMi international which is the 6th largest network of
independent accounting and consulting firms in the world.
Mr. Sohail Hasan
Mr. Hasan is a Chartered Accountant and a member of the
Institute of Chartered Accountants in England and Wales and
ICAP. He was Senior Partner of A.F.Ferguson & Co. He has
served as a member of the Provincial Finance Commission,
Punjab and is a currently a member of the Corporate Law
Review Commission of Pakistan
Mr. Saleem Butt – Director & COO
Mr. Butt is Chartered Accountant by profession. Mr Butt has
over 22 years of diverse experience in Finance, Supply
Chain, Sales, Management, Human Resources,
Administration, IT and ERP Project Implementation. He had
worked with Shell for 14 years in Pakistan and overseas. Mr.
Butt is currently serving as director of PRL and TRG Pakistan
Limited.
Oil Marketing is Dominated by a Single Player
and MNCs seem to losing Interest - An Efficient
Local Player has opportunities
•
Of Muti-National
Companies (MNCs)
Chevron is selling out their
fuel business in Pakistan
•
Shell’s market share has
gone down by 300 bps in
last 5 years
•
Attock on the other hand
has grown their market
share by 300 bps in the
same period
We Have High Aspirations for Growth…
Our People are Our Strength
Mr. Muhammad Ali Ansari – Chief Financial Officer
Mr. Aamir Millwala – General Manager Lubricants
Having 10 years of experience to his credit, Mr. M Ali Ansari is
the Chief Financial Officer at Hascol Petroleum Limited. He is
a Chartered Accountant by profession and has been
associated with Hascol since December 2009.
Mr. Millwala is a sales expert of petroleum Industry with over
13 years of experience. He joined Hascol Petroleum Limited in
March 2013 prior to joining Hascol Petroleum, Mr. Millwala has
worked for Shell Pakistan and played a role of lynch pin in
number of business development which were completed under
his leadership and guiding qualities.
Mr. Zafar Munshi – General Manager Retail &
Marketing
Mr. Zafar Munshi currently holding the position of General
Manager Retail and Marketing is among the senior most
retailer in the Oil Sector. Mr. Zafar Munshi has been
associated with the oil industry for around 20 year with vast
experience in development of retail outlets, sales & marketing.
Previously, he was employed in the retail function at Shell
Pakistan Limited.
Mr. Shamim
Operations
Raza
Naqvi
–
General
Manger
Mr. Naqvi is a seasoned petroleum Industry expert with more
than 33 years of experience in the petroleum industry. He
possesses around 30 years of diversified refinery experience
in PRL. Prior to joining Hascol Petroleum Ltd, Mr. Naqvi has
worked for a reputable OMC for approximately 3 years,
therefore having a well-rounded experience of upstream and
downstream petroleum industry.
Mr. Ahsan Abidi – Head of Internal Audit
Mr. Abidi is the Head of Internal Audit at Hascol, having almost
35 years of work experience. Prior to joining Hascol in August
2012, he had worked with Overseas Oil Trading Company as
well as Admore Gas Limited. He also has prior experience in
Finance division at Shell Pakistan Limited.
Mr. Imran Jawed – Head of Commercial Fuels
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 Industries and on special
projects. Prior to joining Hascol Petroleum, he was associated
with Overseas Oil Trading Company and Admore Gas Limited.
A significant proportion of HPL employees have experience of working in multinational oil companies like Shell, Chevron.
We have Technology and Infrastructure
• From 1st of January 2013 HPL has
gone live on J D Edwards – An ERP
solution that connects and synergize
all our network
• A significant proportion of HPL
employees has experience of
working in multinational oil
companies like Shell, Chevron.
Our Retail Outlets are in Every Part of the
Country and We Plan to Grow Further
Province
Sindh
Balochistan
Punjab
KPK & Fata
AJK & Gilgit
Total
Commissioned
Sites
Sites in Plan
Total
68
7
94
26
5
200
71
8
177
39
5
300
139
15
271
65
10
500
High Standards of Facilities and Service is Our
way of Doing Business
• More than 200 retail sites are in operation
• Another 300 in pipeline at various stages of completion
We Carry an International Lubes Brand in Our
Portfolio
FUCHS
is a leading independent lubricants manufacturer of the world. In 2009,its
sales revenues were €1,178.1 million. The company has 36 production facilities with over
100,000 customer base in more than 100 countries.
FUCHS is among top 10 lubricants manufacturers in the world.
We Pioneer New Ideas and Execute those –
LPG AutoMax
Automax LPG in operation at HascolOne since last year
Focusing on CNG sites
for LPG growth
Our Storage & Distribution Facilities - I
Amangarh in KPK – 1500 MT
Shikarpur in Sindh – 6,500 MT
Our Storage & Distribution Facilities - II
Terminal at PQA, Karachi – 32,000 MT
Under construction Installation at Machike , Punjab – 7,000 MT
Description
Profit & Loss Accounts
2013
2014
2015
2016
Sales - gross
51,287,525 60,956,912 67,213,712 74,317,023
Sales - net of sales tax
44,664,186 53,084,855 58,533,643 64,719,623
Cost of sales
(43,523,262) (51,753,410) (57,075,378) (63,119,829)
Gross profit
1,140,924
1,331,445
1,458,265
1,599,795
Selling and distribution expenses
(486,075)
(519,756)
(552,521)
(585,490)
Administrative expenses
(163,762)
(179,823)
(198,646)
(220,544)
Operating profit
491,087
631,866
707,098
793,760
Finance cost
(60,778)
(44,883)
(43,430)
(44,744)
Other income
115,796
126,164
137,936
151,379
Profit before taxation
546,105
713,147
801,604
900,396
Taxation
126,880
150,801
166,280
183,853
Profit after taxation
419,225
562,346
635,324
716,543
EPS
4.63
6.21
7.01
7.91
2017
81,854,823
71,283,982
(69,499,217)
1,784,765
(620,305)
(245,892)
918,569
(47,839)
166,739
1,037,469
202,500
834,969
9.22
We have the Right Credit Rating: A- and A-2 for
Long-term and Short-term - by JCR-VIS
Roadmap to IPO
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The Issue: 25mn shares at a Floor Price of PKR 17 / share calculating to a total size of
PKR 425mn
Around 18.75mn shares are being issued via Book Building and 6.25mn shares will be
issued to General Public at the strike price determined during book building
PKR 300mn will be utilized for Capex on Machike Storage Facility and new retail
outlets along with PKR 125mn for Working Capital
The Company has achieved a Compound Annual Growth Rate (CAGR) of 48.87% in
topline over the last 5 years
Given the strategic positioning of the Company in OMC sector along with its future
growth plans, we believe that achieving listing at this point will not only assist the
company in achieving its growth plans and improving its brand image but also
provide an opportunity to share the future gains with its investors
HPL has appointed AKD Securities Limited and Avais Hyder Liaquat Nauman
Chartered Accountants as Joint Lead Managers & Arrangers for the proposed IPO.
HPL is currently in the process of preparing the formal listing application to the
relevant Regulators and it is intended that the IPO will be launched in June 2013.
Roadmap to IPO
Oil Marketing Companies - Pakistan
Indicators
PSO*
SHELL**
APL*
HPL**
Retail Oulets
1864
780
403
200
Sales
PKR 1,199,927,907,000 PKR 244,316,875,000
PKR 176,812,437,000 PKR 29,775,296,000
PAT / LAT
PKR 9,056,055,000
(PKR 2,082,531,000)
PKR 4,120,315,000
PKR 218,283,000
Shares
205,622,821
85,609,886
69,120,000
65,600,000
EPS
PKR 44.04
(PKR 24.33)
PKR 59.61
PKR 3.33
Market Price***
PKR 198.37
PKR 142.38
PKR 500.28
PKR 17.00
P/E (x)
4.50
N/A
8.39
5.11
Shareholders' Equity
PKR 49,959,908,000
PKR 6,175,590,000
PKR 12,383,323,000 PKR 1,065,488,000
Book Value
PKR 242.97
PKR 72.14
PKR 179.16
PKR 16.24
P/B (x)
0.82
1.97
2.79
1.05
*Annual Financial Statements - June 2012
**Annual Financial Statements - December 2012
***Market Prices as at 24th April 2013
The floor price of PkR17 per share represent a FY12 P/E multiple of 5.11 (x) & a FY12 P/B multiple of
1.05 (x) which when compared with the average P/E and P/B multiple of the sample selected above,
calculates to an upside potential of 26.31% and 77.77% respectively.
Thank you

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