In this regard, the principal firm, Hascol Petroleum, owns a 15% equity stake in the joint venture while remaining stake is owned by other sponsors / investors. Through this venture, the company would invest further Rs 375 million in Pakistan while total paid up capital of the new company would be Rs 2,500 million divided into 250 million shares of Rs 10/ each. However, investment of Rs 375 million in joint venture by the company is subjected to approval of the investment by the shareholders.

In a notice to Pakistan Stock Exchange on Thursday, Hascol Petroleum informed its shareholder that the company, taking a breakthrough step, has decided to establish new joint venture with other international investors to develop and operate an oil storage terminal facility with the capacity of 200,000 metric tonnes at Port Qasim Authority.

Hascol Petroleum Limited Director Farooq Rahmatulah Khan said in its financial report that despite the decline in oil prices due to global oversupply and sluggish demand, the company has tackled the challenges in a positive manner and endeavoured to achieve satisfactory results, thereby maintaining operational performance during the first quarter of 2016.

“The company is in the process of building new storage depots in various parts of the country keeping in view the operational dynamics of the oil marketing business. Development of infrastructure shall lead to strengthening of the company’s market share in the industry. The company is also focused in strengthening its lubricant business and has future plans of establishing its Lube Oil Blending and Grease Plant,” he added.

During the first quarter, the company recorded net sales revenue of Rs 20.35 billion as compared to net sales of Rs 19.36 billion during the same period of last year. The company earned profit after tax of Rs 202.20 million as compared to Rs 273.68 million during the same period last year. The 26.12% decrease in profit after tax relates to the oil prices taking a further plunge in the first three months of 2016.

Vitol Dubai Limited has acquired 15% shareholding in the company, which would have a positive impact on the company’s volumes and profitability. The company would also have an advantage to import petroleum products competitively at short notice, he concluded.

Earlier, Hascol Petroleum sold its 15 percent stakes to Dubai-based Vitol, a global energy and commodity trading company, at around $28.1 million. Vitol, through Vitol Dubai Limited, bought 18.1 million shares of the company at Rs 162 each.

Vitol signed the share purchase agreement with four major shareholders of Hascol, namely Mumtaz Hasan Khan, Fossil Energy (Private) Limited, Marshal Gas (Private) Limited and Liaquat Ali.