Gul Ahmed Wind Power Limited

CREDIT RATING REPORT | Sep-25

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Rating History
Dissemination Date Long-Term Rating Short-Term Rating Outlook Action Rating Watch
23-Sep-25 A+ A1 Stable Maintain -
27-Sep-24 A+ A1 Stable Maintain -
28-Sep-23 A+ A1 Stable Initial -
About the Entity

Gul Ahmed Wind Power Limited (GAWPL) is a project company under the umbrella of the Gul Ahmed Energy Group, a diversified energy platform with investments across thermal, solar, and wind power generation plants in Pakistan. Incorporated in 2008, GAWPL owns and operates a 50 MW wind power project located in Jhimpir, Sindh, a key renewable energy corridor in the country. The total project cost stood at USD 125.499 million, of which 75% was financed through a balanced mix of foreign and local debt. To date, approximately 84% of the foreign debt and 71% of the local debt obligations have been successfully repaid, reflecting the project’s stable cash flows and sound financial management. The company is governed by a six-member Board of Directors, comprising equal representation from its two principal sponsors: Gul Ahmed Energy Limited and InfraCo Asia Indus Wind Pte. Limited. The Board is led by Mr. Danish Iqbal, who serves as Chief Executive Officer and brings over 24 years of experience in the power and infrastructure sectors. GAWPL is further supported by a capable and experienced management team with deep expertise in project development, operations, and asset management within the renewable energy space.

Rating Rationale

Pakistan’s renewable energy sector continues to mature under the Alternative and Renewable Energy (ARE) Policy, which seeks to diversify the national energy mix and reduce dependence on imported fossil fuels. While wind power projects benefit from long-term Power Purchase Agreements (PPAs) and sovereign-backed revenue structures, sector-wide risks remain, particularly payment delays from CPPA-G, macroeconomic volatility, and evolving regulatory pressures. Within this context, Gul Ahmed Wind Power Limited (GAWPL), a 50 MW wind IPP sponsored by the Gul Ahmed Energy limited, continues to demonstrate stable operational performance. The project operates under an upfront tariff PPA with CPPA-G, ensuring revenue predictability. In FY25, the plant generated 86.033 GWh, compared to 83.269 GWh in FY24, supported by consistent wind conditions and reliable operations under a dual O&M framework involving Nordex Pakistan (Pvt.) Limited and Descon Engineering Limited. The company’s financial profile remains stable, with revenue of PKR 2,026 million in 1HFY25, compared to PKR 6,133 million in FY24, reflecting seasonality and indexation-based adjustments. Receivables from CPPA-G declined to PKR 3,603 million in 1HFY25 from PKR 4,384 million at FY24-end, which, while still elevated, suggests some easing in payment pressure, though the timing and consistency of inflows remain a key monitorable. Its liquidity profile remains adequate, supported by internally generated cash flows and the absence of reliance on external working capital lines. GAWPL has also made significant progress in deleveraging, having repaid approximately 84% of its foreign debt and 71% of its local debt as of FY25.

Key Rating Drivers

The project’s credit profile is underpinned by its predictable cash flow structure, prudent financial management, and experienced sponsors, although it remains sensitive to operational risks inherent to wind projects, including resource variability and O&M execution. Looking ahead, the company’s ability to sustain generation levels, manage receivable turnover, and respond to broader sector reforms will remain central to maintaining its credit strength.

REPORT CONTENTS
  1. Rating Analysis
  2. Financial Summary
  3. Rating Scale
  4. Regulatory Disclosure

Gul Ahmed Wind Power Limited

rating analysis

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Profile
Plant

Gul Ahmed Wind Power Limited (GAWPL) is a Renewable Energy Independent Power Producer operating under Pakistan’s Renewable Energy Policy 2006, a policy initially administered by the Alternative Energy Development Board (AEDB). The company has developed and operates a 50 MW wind power project on a Build–Own–Operate (BOO) basis, located in the Jhimpir area of District Thatta, Sindh, covering approximately 647 acres. The project was issued a generation license by NEPRA in 2011 and began commercial operations in October 2016.


Tariff

GAWPL has been granted an up-front tariff for its Wind Power Project by NEPRA. For the quarter spanning July to September 2025, NEPRA has determined a tariff of PKR 40.9632 per kWh. The project's levelized tariff stands at USD15.3097 cents/kWh, which equates to (PKR 14.9423/kWh).


Return on Project

A Return on Equity of 17% has been agreed upon for the project in accordance with NEPRA’s decision.


Ownership
Ownership Structure

Gul Ahmed Wind Power Limited (GAWPL) functions as a subsidiary of Gul Ahmed Energy Limited (GAEL). As of June 2025, GAEL retained a controlling interest of 55.1% in GAWPL. InfraCo Asia Indus Wind Pte. Limited, categorized as an associated entity, held a 35% stake, whereas the International Finance Corporation (IFC) owned the remaining 9.9% of the company’s shares.


Stability

Gul Ahmed Energy Limited (GAEL), the majority shareholder of Gul Ahmed Wind Power Limited (GAWPL), holds a 55.1% stake in the Company. GAEL operates a 136.17?MW thermal power plant and is part of the Gul Ahmed Energy Group, which maintains a diversified portfolio comprising thermal, wind, and solar power assets. The group has been active in Pakistan’s power sector since 1994, demonstrating long-term operational continuity and commitment to energy infrastructure development. In addition to GAEL, the ownership is supported by InfraCo Asia, an institution focused on sustainable infrastructure across Asia, and the International Finance Corporation (IFC), a member of the World Bank Group known for its governance oversight and long-term investment approach. The combined strength of these sponsors reflects a stable and well-supported ownership structure.


Business Acumen

The sponsor group brings extensive expertise in key sectors such as textiles, trade, and power generation. Their deep-rooted understanding of these industries reflects their strong business capabilities and strategic vision.


Financial Strength

The sponsors demonstrate strong financial strength, backed by a well-diversified portfolio of profitable business operations. This solid financial foundation enhances the overall stability and credibility of the company.


Governance
Board Structure

Gul Ahmed Wind Power Limited’s Board of Directors consists of six members, including the Chief Executive Officer. The board includes three directors representing Gul Ahmed Energy Limited and three representing InfraCo Asia Wind Pte. Limited. The directors bring valuable industry experience and are responsible for providing strategic direction and oversight.


Members’ Profile

Mr. Danish Iqbal serves as both the Chief Executive Officer and Chairman of the Board. He has been associated with the company for over 20 years and has played a key role in the group's earlier power projects. Mr. Abdul Razak Teli, also a board member, brings over five decades of industry experience. The remaining board members come from diverse professional backgrounds and are also involved with companies operating in sectors such as textiles, power and energy, banking, and food.


Board Effectiveness

The experience and background of the board members help guide the company’s management in making better operational and financial decisions. Their involvement supports strong governance and effective policy-making.


Financial Transparency

A.F. Ferguson & Co., Chartered Accountants, act as the external auditors for the Company. For the financial year ended June 30, 2024, they issued an unqualified audit opinion, confirming that the financial statements present a true and fair view in accordance with applicable standards. The audit for the financial year ending June 30, 2025, is currently in process.


Management
Organizational Structure

Gul Ahmed Wind Power Limited has adopted a streamlined and efficient organizational structure. The company maintains a lean setup with a skilled management team in place to oversee operations and enforce control measures. While the internal team focuses on financial and regulatory responsibilities, plant operations and maintenance are outsourced to external contractors, including NORDEX Pakistan (Pvt.) Limited and DESCON Engineering Limited, ensuring specialized handling of technical functions.


Management Team

The core management team consists of four professionals, each contributing to the company’s strategic and operational oversight. Mr. Danish Iqbal currently leads the company as CEO, having taken over the role in 2021 after the passing of Mr. Iqbal Mohammed. He has played a major role in advancing the group’s initiatives in the wind energy sector.


Effectiveness

GAWPL’s management has played an important role in maintaining smooth operations by making timely and well-informed decisions. Their industry knowledge and focused approach have helped improve internal processes, ensure regulatory compliance, and support the company’s overall performance.


Control Environment

The Company has implemented advanced IT tools, such as SAP, to support its day-to-day operations and internal controls. The reliability of the IT infrastructure, along with the range of processes it handles, continues to be regarded as satisfactory.


Operational Risk
Power Purchase Agreement

Under the framework of the Renewable Energy Policy 2006, Gul Ahmed Wind Power Limited (GAWPL) has entered into a 20-year Energy Purchase Agreement (EPA) with CPPA-G.


Operation and Maintenance

GAWPL has entered into two separate agreements, an Onshore Contract with DESCON Engineering Limited and an Offshore Supply Agreement with NORDEX Pakistan Pvt. Limited. These arrangements ensure efficient handling of the plant's operations and equipment supply through experienced service providers.


Resource Risk

The variability of wind resource poses a key operational risk for the project. This risk is entirely borne by the power producer. GAWPL assumes full responsibility for generation shortfalls resulting from insufficient wind availability.


Insurance Cover

The company has arranged insurance coverage through UBL Insurers to mitigate risks related to property damage and operational disruptions. As per contractual terms, the O&M contractor is held accountable for any shortfall in achieving the committed performance benchmarks. This layered approach to risk coverage ensures adequate protection during both construction and ongoing operations.


Performance Risk
Industry Dynamics

In FY2025, Pakistan’s total electricity generation showed signs of stabilization after a period of decline. Hydel power contributed the most to the overall generation with a 31.44% share, followed by re-gasified liquefied natural gas (RLNG) at 17.48%. Local coal accounted for 12.23%, while imported coal contributed 7.13%. Among other sources, nuclear, gas, wind, and furnace oil-based generation made up 17.66%, 8.82%, 3.02%, and 0.41%, respectively. Additionally, solar energy contributed approximately 5% to the energy mix, which includes both utility-scale and net-metered contributions.

The composition reflects a continued reliance on thermal sources, though gradual diversification efforts remain visible within the generation landscape. Looking ahead, the government continues to emphasize the transition towards renewable energy and indigenous fuels to balance the energy mix and reduce dependence on imports. Electricity demand is expected to grow by 5 to 8% in the upcoming fiscal year, supported by industrial recovery, improved grid integration, and enhanced policy clarity.


Generation

In FY25, GAWPL produced 86.033 GWh of electricity, achieving a capacity factor of 19.64%, compared to generation of 83.269 GWh and a capacity factor of 19.01% in FY24.


Performance Benchmark

As per the assessment conducted by the technical adviser, GAWPL’s annual benchmark energy has been estimated at 135.780 GWh, based on an installed capacity of 50 MW and a net plant capacity factor of 31%.


Financial Risk
Financing Structure Analysis

A financing facility totaling USD 46.102 million has been extended to GAWPL by IFC and PROPARCO, priced at 3M LIBOR plus 5.3% per annum. The loan carries a tenure of 10 years and is structured for repayment through 40 equal quarterly instalments. To support debt servicing, GAWPL maintains a Debt Service Reserve Account (DSRA), funded through internal cash generation, which offers a coverage buffer of approximately seven months over the life of the debt. In parallel, the company has arranged a local currency loan of PKR 5.007 billion through a consortium comprising United Bank Limited, National Bank of Pakistan, and Bank Alfalah Limited, at a markup of 3M KIBOR plus 3%. This facility mirrors the foreign loan in structure, with a 10-year term and 40 quarterly repayments. The company’s debt profile reflects a balanced 50:50 split between foreign and local financing.


Liquidity Profile

As of December 2024, Gul Ahmed Wind Power Limited’s total receivables stood at PKR 3,603 million, reflecting a notable reduction from PKR 4,384 million in FY24 and PKR 4,593 million in FY23. The decrease in receivables was primarily driven by the relatively timely disbursement of energy payments by the power purchaser during the period. Despite this improvement, the company’s net working capital cycle increased to 352 days (FY24: 255 days; FY23: 361 days). This rise was mainly attributed to the timely settlement of trade payables, which decreased to PKR 59 million in Dec’24 from PKR 122 million in FY24, along with the impact of late payment charges affecting the timing and alignment of cash inflows. As an Independent Power Producer (IPP), GAWPL remains inherently exposed to delays in payments from the power purchaser, a common sector-wide challenge, reinforcing the need for effective working capital management to maintain operational continuity.


Working Capital Financing

A working capital line serves as a financial buffer, enabling the Company to meet its operational and financial commitments in the event of delayed payments from the power purchaser. In the case of renewable IPPs, the absence of fuel costs significantly reduces overall working capital requirements. Currently, GAWPL has no arrangements or plans in place for securing a working capital facility.


Cash Flow Analysis

The stability of GAWPL’s future cash flows is closely linked to the uninterrupted performance of its wind turbines. The Company has demonstrated consistent operational strength, generating Free Cash Flows from Operations (FCFO) of PKR 1,647 million in 1HFY25 (1HFY25: PKR 1,647mln; FY24: PKR 5,704mln; FY23: PKR 4,221mln; FY22: PKR 3,647mln). Correspondingly, the FCFO to finance cost coverage ratio stood at 4.4x as at Dec’24 (FY24: 5.1x; FY23: 3.6x), reflecting adequate capacity to meet debt obligations. The company’s loans are structured with quarterly repayments, and by June 2025, GAWPL had successfully made 35 scheduled installments on each loan facility.


Capitalization

As of end-December 2024, GAWPL's leverage stood at 27.7%, compared to 32.5% in FY24 and 42.8% in FY23, reflecting a consistent deleveraging trend. The Company has been meeting its principal and interest obligations in accordance with its agreements with financing institutions. As of June 2025, approximately 84% of foreign debt and 71% of local debt have been successfully repaid. 
 
 

Sep-25

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Gul Ahmed Wind Power Limited

financial summary

(PKR mln)

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Dec-24
6M		 Jun-24
12M		 Jun-23
12M		 Jun-22
12M
A. BALANCE SHEET
1. Non-Current Assets 9,629 10,086 10,900 10,551
2. Investments 5,443 4,951 4,558 3,524
3. Related Party Exposure 0 0 0 0
4. Current Assets 4,219 5,051 5,513 5,205
a. Inventories 0 0 0 0
b. Trade Receivables 3,603 4,384 4,593 4,840
5. Total Assets 19,291 20,088 20,971 19,279
6. Current Liabilities 362 548 1,065 877
a. Trade Payables 59 122 272 184
7. Borrowings 5,237 6,348 8,510 8,455
8. Related Party Exposure 0 0 0 0
9. Non-Current Liabilities 2 2 1 1
10. Net Assets 13,690 13,191 11,395 9,945
11. Shareholders' Equity 13,690 13,191 11,395 9,945
B. INCOME STATEMENT
1. Sales 2,026 6,133 4,538 4,094
a. Cost of Good Sold (718) (1,511) (1,390) (1,148)
2. Gross Profit 1,308 4,622 3,149 2,946
a. Operating Expenses (67) (105) (93) (68)
3. Operating Profit 1,241 4,517 3,056 2,879
a. Non Operating Income or (Expense) 243 502 279 180
4. Profit or (Loss) before Interest and Tax 1,484 5,019 3,335 3,059
a. Total Finance Cost (375) (1,134) (1,172) (771)
b. Taxation (9) (58) (43) (20)
6. Net Income Or (Loss) 1,100 3,827 2,119 2,269
C. CASH FLOW STATEMENT
a. Free Cash Flows from Operations (FCFO) 1,647 5,704 4,221 3,647
b. Net Cash from Operating Activities before Working Capital Changes 1,207 4,531 3,211 2,959
c. Changes in Working Capital 671 (185) 66 (772)
1. Net Cash provided by Operating Activities 1,877 4,346 3,277 2,188
2. Net Cash (Used in) or Available From Investing Activities (279) (451) (1,104) (197)
3. Net Cash (Used in) or Available From Financing Activities (1,723) (4,412) (2,012) (1,855)
4. Net Cash generated or (Used) during the period (126) (517) 162 136
D. RATIO ANALYSIS
1. Performance
a. Sales Growth (for the period) -33.9% 35.1% 10.9% 28.6%
b. Gross Profit Margin 64.6% 75.4% 69.4% 72.0%
c. Net Profit Margin 54.3% 62.4% 46.7% 55.4%
d. Cash Conversion Efficiency (FCFO adjusted for Working Capital/Sales) 114.4% 90.0% 94.5% 70.2%
e. Return on Equity [ Net Profit Margin * Asset Turnover * (Total Assets/Shareholders' Equity )] 15.7% 28.4% 19.4% 23.9%
2. Working Capital Management
a. Gross Working Capital (Average Days) 360 267 379 397
b. Net Working Capital (Average Days) 352 255 361 383
c. Current Ratio (Current Assets / Current Liabilities) 11.7 9.2 5.2 5.9
3. Coverages
a. EBITDA / Finance Cost 4.4 5.1 3.7 4.8
b. FCFO / Finance Cost+CMLTB+Excess STB 1.0 1.7 1.3 1.6
c. Debt Payback (Total Borrowings+Excess STB) / (FCFO-Finance Cost) 2.1 1.4 2.8 2.9
4. Capital Structure
a. Total Borrowings / (Total Borrowings+Shareholders' Equity) 27.7% 32.5% 42.8% 46.0%
b. Interest or Markup Payable (Days) 88.1 84.0 105.0 100.3
c. Entity Average Borrowing Rate 11.8% 15.1% 13.7% 9.0%

Sep-25

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Gul Ahmed Wind Power Limited

rating scale

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Sep-25

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Gul Ahmed Wind Power Limited

regulatory disclosure

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  1. Rating Team Statements
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