Lahore, July 04, 2023 (PPI-OT): The ratings reflect strong business profile of Engro Elengy Terminal (Private) Limited (EETPL or the Company), being the pioneer in the industry. Further, GOP’s commitment to managing energy needs of the country by way of imported LNG adds to its strength. Another significant factor is the financial strength and experience in the energy chain of the sponsoring companies – Engro Corporation Limited and Vopak LNG Holding B.V. Installed FSRU has usual capacity of 630mmcfd (peak hours: 680mmcfd). Thus, a sizable and recurring stream of income is ensured which resulted in company posting a top line of PKR 5,390mln in 3MCY23 (CY22: PKR 16,409mln).
Engro Elengy continues to meet its availability (~95%) – an outcome of technically sound operations and maintenance operator, Excelerate Energy (EE), is a key source of comfort in managing the plant’s operations. The EETPL low business risk profile encompassing long-term energy supply contract inked with SSGC ensuring guaranteed off – take translating to stable revenues and cash flows stream, subject to adherence to agreed parameters. SSGC, the sole intermediary, has demonstrated timely payments against committed purchases despite challenges. The company’s repayment capacity in terms of debt service remains at a comfortable level.
Implementation of IFRS -16, which required company to book all leased assets and their corresponding lease liabilities, increased company’s leveraging but did not have any significant impact on company’s net financial position. Timely project debt repayment and internal cash generation strengthen the financial risk profile of EETPL which is further supported by the corporate guarantee from sponsor group.
The ratings remain dependent on smooth operations of the terminal, and conduct of sole buyer with reference to the timely payments to Engro Elengy Terminal.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com
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