PACRA maintains Entity Ratings of Energy Infrastructure Holding (Pvt.) Limited
The ratings reflect Energy Infrastructure Holding (Pvt.) Limited's ('the Company') association with its parent company, Jahangir Siddiqui & Co. Ltd. (JSCL). The Company has entered in LPG Storage and Oil Marketing businesses through its subsidiaries- JS Petroleum and JS Fuel. These projects are at initial stages with a medium term gestation period. The slowdown in economy and respective energy sectors may prolong materialization of envisaged strategy. Being an investment arm of JSCL, both projects are predominantly funded - through equity - by the parent company. However, they require time to stabilize and become dividend yielding investments. Meanwhile, the Company has a portfolio of listed equity investments for steady dividend inflows. The Company has a strong financial profile, represented by 100% equity base. The Company is expected to limit borrowings to the extent of debt ratios that finance cost is adequately covered through dividend income.
The ratings are dependent on continued support of the parent company. Realization of the envisioned investment plans and formalization of a strong and effective mechanism for monitoring performance and providing holistic direction as a HoldCo are critical. Excessive leveraging, leading to weak coverages and/or deteriorating profitability, will have negative impact on ratings.
Energy Infrastructure Holding (Pvt.) Limited is a wholly owned subsidiary of Jahangir Siddiqui & Co. Ltd. The Company was incorporated in 2008 as a private limited company under the Companies Ordinance, 1984 (now the Companies Act, 2017). Mr. Hasan Shahid is Chairman of the BoD and Mr. Najmul Hoda Khan is CEO of the Company.The principal activities of the Company are to invest in energy, petroleum and infrastructure projects.