Lahore, March 24, 2023 (PPI-OT): Halmore Power Generation Company Limited (the Company) is an independent power producer (IPP), operating a Combined Cycle gas turbine plant on a build-own operate (BOO), having gross capacity of 225MW located at Bhikki Sheikhupura. The plant achieved its commercial operations in June 2011 with its PPA valid till Feb’2042.
Mr. Karim Ud Din is the major sponsor of the Company. The Company has an O and M with General Electric and fuel supply agreements with SNGPL and PSO. The ratings of Halmore take comfort by the Power Purchase Agreement signed between Power Purchaser and Halmore which ensure capacity payments as well as guaranteed electricity offtake – given adherence to agreed parameters.
Further, cushion is drawn from low operational risk, a result of established performance credentials of GE – the O and M operator. The required availability for Halmore Power under the PPA is 90%. During the period average plant availability remained in accordance with the agreed parameter. The plant generated 109,863.09 MW of net electrical output for the six-month ended Dec 2022. Net income recorded during 6MFY23 was PKR 1,763mln (6MFY22: PKR 1,096mln, 6MFY21: PKR 1,639mln).
The company successfully paid off its Long-Term project related debt in June 2021 resulting in a favourable impact on its financial risk profile. As on Dec 2022, the debt profile comprises short-term borrowings only, which have been availed to meet working capital requirements, mainly due to delayed payments from the off taker. The Company has equity base of PKR 20,196mln whereas leveraging stands at 38.2% at end 1HFY23.
Upholding operational performance in line with agreed performance levels would remain a key rating driver. Sustained good financial discipline and upholding strong operational performance in line with agreed performance levels remain important.
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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