The objective of Hascol Petroleum Limited is to create a retail network catering the

fuel needs of its customer base throughout the country; reaching remote areas for
domestic consumption and to cater the energy needs of all the industrial clients in an
efficient and profitable manner. Hascol Petroleum Limited recognizes oil and gas as an
energy resource integral to future needs for economic development in this era of world
globalization.

Their business strategy is devised in a manner that ensures fulfilling energy needs in an
environmentally viable and socially responsible conduct. our aspiration is to attain a
high standard of performance with robust profitability as well as strengthening market
position in the competitive environment. They closely liaise with our customers, partners
and policy-makers to fulfill everyone's needs. A reputation is not built overnight. But
when core values are in place, customers give it recognition for international standards,
good governance and fair play.

Hascol Petroleum Limited transacts its business based on the following Business
Principles; for which the objectives are stated below:

 Value of Hascol
 Competitive Environment
 Integrity and Honesty
 Safeguarding the Human Capital
 Economics
 Meeting and Engagements
 Compliance
 Business based on our Principles
 Country Politics
 Customer Relation
 Information Sharing
 General Public Relation
2014 was outstanding year for the Company. Despite the sharp drop in oil prices in
the last four months of the year, we were able to achieve significant increase both in our
volumes and profitability.

During the year the Net Profit after Tax (NPAT) of the Company was reported at Rs.
0.64 billion as compared to Rs.0.39 billion during the last year reflecting an increase of
63.47%, while our sales reached an all times high of Rs. 99 billion.

Machike installation and this has improved our supply chain management in central
Punjab and enabled us to meet all the requirements of our retail outlets and other direct
customers.

During 2014 your Company also acquired shares in Pakistan Refinery Limited (PRL).
We currently hold 13.72% shares in PRL and two of our nominees are on the board of
PRL. Our logic in becoming a shareholder in PRL is to secure our supply upliftment
rights from a local refinery and thereby fine tune our supply and distribution model.

2015 was another outstanding year for the company. They exceeded the targets
both in volumes and profitability. They are now amongst the top four oil marketing
companies of the country in terms of volumes.

During the year the Net Profit After Tax of the company was reported Rs. 1.13 billion
reflecting an increase of 77.05 %. Similarly, our sales in terms of volumes reached an all
time high reflecting an increase of 39%.

There credit rating has improved further and in our recently floated Sukuk Bonds, the
rating of the instrument was “AA –” (Double A Minus).

The Machike installation is now full with additional tankage of 2,500 MT of Mogas. A
new installation has been planned on additional fifteen acres of land in order to meet
the increased demand in this location. The investment in all these storage facilities will
improve our supply chain management and have positive impact on our volumes and
profitability.
2016 during the year the Company has achieved a growth of 46% as compared to
last year, with sales volume at 1,862,649 MT. The Gross Profits have also improved by
65.83%, thereby generating a Profit after Tax of Rs. 1.22 billion in comparison to Rs.
1.13 billion of previous year, showing an increase of 7.27%.

Company was also entering the LPG business and has applied to OGRA for LPG
Marketing License. They will be setting up a storage facility at Port Qasim to import LPG
and sell bulk LPG to third parties and through cylinders.

The company will continue with its aggressive plan to develop the Retail Outlets and
new depots to open new sales envelop. By the end of 2017, our retail network will cross
500 Retails Outlets and two new storage facilities at Sahiwal and Amangarh will be
operational. Necessary land has also been acquired at Kotla Jam to develop a storage
facility to meet the growing demand, resulting from CPEC.

2017 has been another record year for Hascol Petroleum Limited, Alhamdolillah!
I’m pleased to announce our results for the year ended December 2017. It has been a
year of strong performance by all functions, market share consolidation and expansion.
The Board of Directors is pleased to announce and recommend a final cash dividend of
Rs. 3.5 per share.

Hascol Petroleum Limited’s retail network has increased to 498 sites. We are
continuously investing and increasing our supply chain infrastructure, depots and
terminals. Concurrently, our OGRA Standards compliant company fleet has reached 67
and has successfully completed one and a half years of safe and reliable operations.

In 2017, with the issuance of right shares, your Company is now poised to make critical
and strategic investments that will help us further cement our position in the market.
JCR-VIS Credit Rating Company Limited has upgraded the entity ratings of Hascol
Petroleum Limited to ‘AA- / A-1’ (Double A Minus / A – One) from ‘A+/A-1’ (Single
A Plus / A – One). The improved ratings are a consequence of our increasing market
share, significant ongoing and projected investments in infrastructure (storage, retail
footprint and supply chain) and other initiatives which will facilitate in sustaining our
growth momentum. Going forward, our objectives for this year are even more ambitious
as we pursue an aggressive growth strategy and focus on further Retail Development,
NFR businesses, strong Commercial and B to B sales, company fleet expansion, and
diversification into new product streams.

2018 was a very challenging year both for Hascol and for the other Oil Marketing
Companies. Certain Government steps like stopping the use of Furnace Oil in power
generation, severe currency devaluation to the tune of 30%, raising of interest rates by
the State Bank of Pakistan, all had a negative impact on our profitability. As such,
despite the hard work by the entire Management Team of Hascol our results have been
disappointing and we ended the year with a very modest profit.

Response of Ministry of Petroleum and OGRA to the problems being faced by Oil
Marketing Companies have also had no satisfactory response, thereby, creating a lot of
uncertainty about the business model of the Hascol. Our efforts are continuing to
engage the Government and make them realize the seriousness of the situation.

They were able to complete our oil storage facility at Thalian (near Islamabad) and at
Kotlajam. The completion of all these storage facilities will again benefit our supply
chain management and give us a significant advantage over most of our competitors

2019 The company, along with the wider industry, has faced a challenging period,
and all oil marketing companies have had to deal with many pressures. Pakistan has
faced a reversal in its recent rapid growth, and this has adversely affected the demand
for petroleum products. The nature of the market itself has changed, particularly as the
power sector has steadily reduced its use of fuel oil for electricity generation. There has
been significant volatility in the international oil market, and serious currency
devaluation in the local economy.

When all put together, the effect of all these factors has been to render the company
unprofitable in 2019, but it has throughout received valuable support from its
sponsors, shareholders and bankers. The company has begun to reposition itself
through organizational restructuring and wholesale cost optimization. A successful
turnaround has been hampered by the Coronavirus and the massive collapse in demand
and prices which resulted.

With new management and a revised Board, every effort will now be made to turn the
corner and restore the company to growth and profitability. Those efforts will be
accompanied by keen attention to high standards of governance and ethics in order to
ensure that an efficient and respectable company stands behind the Hascol brand.