Energy Infrastructure Holding (Private) Limited ('the Company' or 'EIHPL') is a private limited company incorporated in Pakistan under the repealed Companies Ordinance, 1984 (now the Companies Act, 2017).

The Company was incorporated on April 15, 2008 as a wholly owned subsidiary of Jahangir Siddiqui & Co. Limited. (the “Holding Company”). The principal business activities of the Company comprise making strategic investments in the energy, petroleum, and infrastructure sectors. These sectors are inherently long-term and capital-intensive, indicating that the Company’s investment strategy is oriented toward sustainable and stable growth. Furthermore, the Company’s status as a subsidiary of a well-established holding entity provides enhanced financial support, industry expertise, and access to strategic partnerships, thereby strengthening its capacity to undertake and manage large-scale investment initiatives.

EIHPL remains a wholly owned subsidiary of JSCL, which directly holds 100% of the Company’s share capital. During 2025, JSCL undertook a restructuring of its energy investment portfolio, whereby Quality Energy Solutions (Private) Limited (QESPL) was merged into EIHPL, following approval by the SECP in July 2025, with effect from May 31, 2025. Post-merger, all assets and liabilities of QESPL were consolidated into EIHPL, strengthening EIHPL’s role as the dedicated platform for JS Group’s energy, petroleum, and infrastructure investments.

The ownership profile of EIHPL is characterized by a high degree of stability, supported by its status as a wholly owned subsidiary of JSCL. The single-shareholder structure ensures a clear and cohesive strategic and governance framework, facilitating streamlined decision-making and consistent sponsor support. The recent internal restructuring, involving the merger of Quality Energy Solutions (Private) Limited into EIHPL, underscores the sponsor’s intent to consolidate related investments under a unified platform, enhancing oversight, operational coherence, and strategic alignment.

JS Group is one of Pakistan’s prominent business conglomerates, with diversified interests primarily concentrated in the financial sector, encompassing asset management, financial advisory, brokerage, insurance, and banking. The Group also holds strategic investments across a broad spectrum of industries, including textiles, energy, infrastructure, media services, telecommunications, and technology.

As a wholly owned subsidiary of JSCL, the Company benefits from strong financial backing and strategic support from its parent.

The Board of Directors consists of three members, all of whom serve in a Non-Executive capacity. The limited size of the Board, together with the absence of independent directors, highlights scope for enhancement in the overall governance framework. Nonetheless, oversight is reinforced through the presence of common personnel between the senior management of JSCL and the Board of EIHPL, which supports alignment with group-level strategic direction and strengthens monitoring mechanisms.

Mr. Muhammad Babar Din, an Associate Member of the Institute of Cost and Management Accountants of Pakistan (ICMAP), serves as the Chief Financial Officer of JSCL and brings over 18 years of experience in financial institutions, with expertise in financial and managerial reporting, treasury operations, International Accounting Standards (IAS), and International Financial Reporting Standards (IFRS), having been associated with JS Group since 2018. Ms. NoorUlain, the Chief Executive Officer of the Company, is currently pursuing Chartered Accountancy from the Institute of Chartered Accountants of Pakistan (ICAP) and possesses more than nine years of experience in auditing, finance, and taxation, having joined the Company in 2021. Mr. Furqan Ahmed, a part-qualified ACCA professional, has six years of overall experience and has been associated with the Company since 2023.

The Board convenes on an as-needed basis, with attendance consistently maintained at full strength.

KPMG Taseer Hadi & Co., Chartered Accountants, serve as the Company’s external auditors. For the year ended December 31, 2024, the firm issued an unqualified audit opinion. KPMG Taseer Hadi & Co. is QCR-rated and listed on the State Bank of Pakistan’s panel of auditors, underscoring its credibility and professional standing.

Currently, the management of JSCL is looking after the affairs of the Company. JSCL has optimized its organizational structure as per the needs of the business. There are four major departments including a) Investments, b) Finance, c) Human Resources and Administration, and d) Corporate Affairs.

Ms. NoorUlain, Chief Executive Officer, is currently pursuing Chartered Accountancy from the Institute of Chartered Accountants of Pakistan (ICAP) and brings over nine years of professional experience in auditing, finance, and taxation, having been associated with the Company since 2021, while Mr. Waleed Bhatti serves as Chief Financial Officer and Company Secretary and is an ACCA member with over ten years of professional experience, associated with the Company since 2023; collectively, the senior management team of EIHPL comprises highly qualified and experienced professionals with strong industry expertise and a sustained association with the Company, providing effective leadership, sound governance, and robust operational oversight.

Given the nascent stage of the underlying subsidiaries and the limited scale of the Company’s operations, no formal management committees have been established to date. A structured review mechanism to monitor and evaluate the performance of subsidiaries is planned for implementation in the future, aimed at strengthening oversight and enhancing operational effectiveness.

The Company prepares management accounts and reports, including variance analyses, on a monthly basis. Following review, these reports are submitted to the ultimate parent company, JSCL, for consolidation and group-level reporting. Annual budgets are formulated to evaluate and plan for the Company’s financing requirements.

The Company’s investment decisions are approved by the Board. The investment oversight framework is structured such that Board members are represented on the boards of investee companies. Prior to attending these board meetings, the members obtain the necessary information and analysis from the Investment Committee to ensure informed decision-making.

The Company follows a prudent investment strategy, with core and strategic investments focused on LPG storage and the insurance sector, respectively. In addition, the Company maintains a portfolio of trading investments. Liquidity is effectively managed and preserved through steady dividend income and holdings in short-term listed securities, ensuring financial flexibility to support operational and strategic requirements.

The Board receives a quarterly investment dashboard that highlights the performance of investee companies. Management has also outlined initiatives aimed at further strengthening the investment oversight framework going forward, enhancing monitoring and strategic decision-making.

EIHPL’s investment portfolio is classified into three categories: (a) Core Investments, (b) Strategic Investments, and (c) Trading Investments. The portfolio comprises holdings in LPG storage (JS Petroleum Limited), insurance (EFU Life and General Insurance), and sugar (Al Abbas Sugar Mills Limited). Notably, a significant portion of the portfolio is concentrated in the insurance sector, with EFU General Insurance accounting for ~45% of total investments, followed by the sugar sector at ~26% through Al Abbas Sugar Mills Limited. In addition, the Company has diversified its investments across other sectors, including banking, chemicals, fertilizers, and glass.

The Company maintains a well-diversified investment portfolio, comprising a core holding in an unlisted subsidiary, a strategic stake in a listed related party, and short-term investments in listed equities. The marketable segment of the portfolio primarily consists of trading investments, valued at ~PKR 2.45 billion as of September 2025, which provides substantial liquidity and enhances the Company’s financial flexibility.

The Company primarily derives its topline from dividend income generated through its investment portfolio, highlighting significant reliance on returns from its investee companies. During 9MCY25, the Company reported total investment income of ~PKR 263 million, up from PKR 194 million in the corresponding period last year, reflecting a growth of ~35%. EFU General Insurance Limited remained the largest contributor, accounting for ~PKR 109 million, followed by Al-Abbas Sugar Mills with ~PKR 54 million. While these investments provide stable and predictable cash flows, the concentration of dividend income from a limited number of entities exposes the Company to sector- and investee-specific risks. The Company also holds a small portfolio of trading equity securities, which provides modest additional income and liquidity. Sustaining growth in total investment income will therefore largely depend on the performance of core dividend-paying holdings, while the trading securities portfolio offers limited supplementary support.

The Company’s funding and coverage metrics for 9MCY25 underscore strong financial health and disciplined capital management. The Investment Income to Funding Cost ratio increased significantly to ~269.7x from ~131.6x in CY24, while TCF to Finance Cost improved to ~144.7x from ~95.3x, reflecting strong internal cash generation and a strong capacity to comfortably meet financial obligations. The Debt Payback ratio remained stable at ~0.1x, indicating sustained liquidity strength and minimal refinancing risk. Additionally, leverage remains modest, as reflected by the Funding to Market Value of equity investments, which points to limited debt exposure relative to asset values. Overall, these metrics highlight enhanced operating performance, high financial flexibility, and a secure, low-risk funding profile.

Leverage, as measured by Funding to the sum of Funding and Shareholders’ Equity, remains very low at ~0.2% in 9MCY25, down from ~0.3% in CY24, reflecting the Company’s minimal reliance on external financing relative to its equity base. Total debt, which comprises solely lease liabilities, includes current debt accounting for ~36% of total funding in 9MCY25, up from ~31.1% in CY24. The overall capital structure remains strong and predominantly equity-funded, supporting financial stability and flexibility.

The Company derives considerable financial strength from its association with the JS Group, operating as a wholly owned subsidiary of JSCL, a leading investment company with a broad and diversified business footprint. Supported by JSCL’s stable profitability, strong market standing, and established presence in capital markets, the Company benefits from both strategic guidance and access to financial support when required, enhancing its overall stability and long-term growth prospects.