PACRA maintains the Entity Ratings of Pakistan National Shipping Corporation

The ratings reflect PNSC's strong ownership - majority owned by the Government of Pakistan (89.13%) - and its strategic significance as the country's national flag carrier. The Corporation operates on a "One Vessel One Company" basis. PNSC’s business profile has gained significant strength in recent years on account of efficient fleet utilization and cost management measures taken by the management. Revenues emanate from a mixture of liquid and dry cargo, with liquid cargo bearing a higher weightage. Corporation's revenues in 1QFY24 and FY23 surged on the account of steep increase in AFRA and exchange rates. Moreover, after disposal of one tanker, M.T. Karachi, the position was maintained due to the inclusion of two oil tanker vessels M.T. Mardan and M.T. Sargodha, however, total seaborne trade of Liquid Bulk showcased a decreasing trend. The Dry Bulk segment total trade has also been decreasing due to high shipping rates, surged due to macro economics factors. However, the effect is now settling down and the industry is recovering. Similarly, the Company showcased a recovering trend in the volumes shipped in Dry Bulk Segment. Furthermore, globally, the freight and charter rates have remained under pressure and the industry has remain strained, however are rebounding back to normal. While, the volatility in crude oil prices remains pertinent. Despite uncertain factors of the industry, PNSC is successfully following prudent financial discipline alongside the growth trajectory. Also, corporation is persistently working to further increase the fleet size. Additions in managed fleet will significantly support the existing revenue base of 12 vessels, and generate better topline & profit margins than from chartered-hire vessels business. This factor, put along with the Corporation's on-balance sheet liquidity, is a support to the overall risk profile.
The ratings are dependent on the Corporation's ability to generate amicable cash flows post expansion. Meanwhile, sagacious financial discipline is imperative.

About the Entity
PNSC, majority (89.13%) owned by the Government of Pakistan (GoP) through Ministry of Maritime Affairs, functions as a holding company with 19 wholly owned subsidiaries and an associate. PNSC group, operating on a one-ship one-company model. PNSC’s revenue emanates from two sources both from owned and charter vessels; liquid cargo and dry bulk. Dry bulk can further be subdivided into slot charter and bulk cargo. A small proportion of revenue comes from rental income too. Major customer of PNSC are the Oil refineries of the country. Over the years, the contribution from liquid cargo has increased and constitutes the largest share, followed by slot charter and bulk cargo. The Corporation is now managing a fleet of twelve vessels, comprising five bulk carriers and seven oil tankers, with a total cargo capacity of 938,876 DWT. The average age of current fleet stood at 17 years. Rear Admiral Jawad Ahmed, SI (M) is the Chairman and CEO.