Key points:
- Orders were secured from major oil marketing companies
- Projects cover automation, tank monitoring and digitalisation
- Growing installed base could generate recurring service revenue
ISLAMABAD: Pakistani technology company Avanceon Limited has secured orders worth $6.3 million from some of the country’s largest oil marketing companies for projects in the fuel retail sector.
The automation project would strengthen its position in an increasingly automated downstream energy market.
The company disclosed the orders in a notice to the Pakistan Stock Exchange (PSX), saying the projects cover automation, Automatic Tank Gauging (ATG) systems and digitalisation at fuel retail outlets.
Avanceon said the contracts could support future business growth as automation remains limited across Pakistan’s more than 10,000 fuel stations.
The company expects further opportunities from new installations, system upgrades, regulatory compliance, remote monitoring and digital fuel management.
The expanding installed base could also provide a more predictable source of income through preventive and corrective maintenance, software, technical support and system upgrades.
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The orders are significant beyond their immediate value because fuel stations are adopting digital systems to improve inventory control, detect leaks, monitor fuel levels and reduce operational losses.
Automatic tank-gauging technology can provide real-time information on underground fuel inventories and help operators identify discrepancies more quickly.
Pakistan moves to energy sector automation
For Pakistan’s energy retail sector, greater automation could also improve operational efficiency and regulatory compliance as oil marketing companies modernise their networks.
Avanceon, incorporated in Pakistan in 2003 and converted into a public company in 2008, provides industrial automation and control equipment and related technical services.
Its expansion into fuel retail technology gives it exposure to a large domestic market in which much of the potential for automation remains untapped.
The company said the latest projects reinforce its role as a technology partner for Pakistan’s fuel retail and downstream energy industry.
They would also provide a platform for sustained growth through deployments, upgrades and recurring lifecycle services.
