KARACHI: Vitol Dubai Limited (VDL) has agreed to provide financial facility of $42 million to Hascol Petroleum Limited, an announcement said on Monday.
The announcement informed Pakistan Stock Exchange (PSX) that Hascol Petroleum Limited and Vitol Dubai Limited, a major shareholder of Hascol, had entered into financial arrangement whereby VDL had agreed to provide facilities of $42 million.
The financial facilities included: Bank guarantee facility of $15 million; open credit limit facility of $12 million; and stock availability at HTL Port Qasim Terminal of $15 million. The company said that the arrangement would further strengthen the supply chain of the company.
Hascol Petroleum Limited is engaged in the purchase, storage and sale of petroleum products such as High Speed Diesel, Gasoline, Fuel Oil and FUCHS lubricants.
In February 2005 Hascol was granted an oil marketing license by the Government of Pakistan and since then, Hascol has been engaged in developing a retail network under Hascol brand and have commissioned over 500 retail outlets in the four provinces of Pakistan and Azad Jammu and Kashmir.
Hascol Petroleum Limited has extensive links with the domestic and international oil trading companies and today is the second largest importer of petroleum products after PSO.
Hascol also markets LPG. At present 15 Automax LPG Stations across Pakistan are in various stages of approvals with the government of Pakistan.
Hascol has become a member of the highly esteemed listed companies of Pakistan Stock Exchange and its share price has appreciated considerably since the listing in 2014, keeping in pace with the phenomenal growth of the company.
This massive growth has been made possible due to the strategic vision of the Board and excellent execution by Senior Management.
Hascol has made major headway in constructing storage facilities at Keamari, Daulatpur, Shikarpur, Mehmood Kot, Machike and Amangarh. New storage facilities are compeleted for Sahiwal, Kotlajam and Thalian.
In 2016, VITOL, the largest independent oil trading entity in the world, acquired 15 percent equity in Hascol which was later increased to 27.46 percent making VITOL the single largest shareholder in the Company.
In joint venture with VITOL, Hascol has also set up an LNG marketing company, VAS LNG (PVT) LTD.
Hascol will have a 30 percent stake in this company and VITOL 70 percent. Hascol has also signed a Technical Services Agreement with VITOL Aviation enabling Hascol to start fueling aircrafts at Karachi, Lahore and Islamabad airports.
Additionally, a separate joint venture company with VITOL, Hascol Terminals Limited (HTL) has constructed one of the largest Petroleum Terminals in Pakistan at Port Qasim, having a capacity of 197,000 Metric Tons. Phase I of this terminal was commissioned in March 2019.