Oilboy Energy Limited has announced plans to change how it will use Rs. 250 million raised from a recent rights issue. The company now intends to divert the funds from a planned bio-oil project to expanding its trading and logistics operations.
In a notice to the Pakistan Stock Exchange (PSX) on Tuesday, Oilboy Energy stated that its board of directors had approved a proposal to seek shareholder consent at the upcoming Annual General Meeting (AGM). The decision reflects the company’s revised strategy to focus on strengthening its core business areas.
Initially, the raised capital was allocated for the “Bio-Oil from Pyrolysis – Waste to Energy through Fast Pyrolysis” project. However, the company has now proposed three new uses for the funds. These include expanding its trading activities in coal, LPG, and related fuel products, improving storage and logistics infrastructure, and increasing working capital to enhance operational efficiency.
The board has also authorized the Chief Executive Officer to take all necessary steps to implement the new plan. This includes preparing regulatory submissions, completing filings, and calling the AGM where shareholders will vote on the revised fund allocation.
The proposed changes will only take effect after receiving approval from shareholders, the Securities and Exchange Commission of Pakistan (SECP), and the Pakistan Stock Exchange.
According to the company, this shift will help Oilboy Energy strengthen its trading network, improve supply chain efficiency, and position itself for sustainable growth in Pakistan’s energy sector. The management believes that investing in its core business areas will yield better financial results than pursuing the earlier bio-oil project.
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By redirecting its resources toward trading and logistics, Oilboy Energy aims to build a more competitive and flexible business model capable of meeting the growing energy needs of the market. The move marks a significant step in reshaping the company’s strategic direction toward long-term profitability.
