Oilboy Energy redirects Rs250mn funds to expand trading operations

Oilboy Energy Limited, formerly Drekkar Kingsway Limited, has decided to redirect the funds raised through its Rs250 million right issue towards expanding its trading and logistics operations, marking a shift from its earlier plan to invest in a bio-oil project.

The listed company disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.

The company had raised Rs250 million through the issuance of 25 million ordinary shares at Rs10 each, originally meant to finance its “Bio-Oil from Pyrolysis – Waste to Energy through Fast Pyrolysis” project.

“The proposed plant is based on fast pyrolysis is a waste-to-energy process that quickly heats organic waste without oxygen, producing bio-oil, syngas, and char for energy and other uses,” the company said back then.

In a recent resolution approved by its members, Oilboy Energy said the funds will now be utilised for three purposes — expanding its existing trading business involving coal, liquefied petroleum gas (LPG) and allied fuel products; upgrading storage, logistics and supply chain infrastructure; and strengthening its working capital base and operating assets.

The company’s chief executive officer has been authorised to take all necessary steps and make regulatory filings to implement the revised plan.

Oilboy Energy was registered on June 28, 1993, as a Private Limited Company and was subsequently converted into a Public Limited Company on June 29, 1994.

The principal activity of the company is to manufacture electrical appliances, cosmetics, toiletries, leather goods, machinery, components and parts. In 1996 the company sold its plant and machinery.

The company is currently engaged in making equity investments in undervalued profitable situations.