logo
The Pakistan Credit Rating Agency Limited
Press Release

Date
03-Feb-21

Analyst
Faiqa Qamar
faiqa.qamar@pacra.com
+92-42-35869504
www.pacra.com

Applicable Criteria

Related Research

Disclaimer
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Entity Ratings of Energy Infrastructure Holding (Private) Limited

Rating Type Entity
Current
(03-Feb-21)
Previous
(07-Feb-20)
Action Maintain Maintain
Long Term A- A-
Short Term A1 A1
Outlook Stable Stable
Rating Watch - -

The ratings reflect Energy Infrastructure Holding (Pvt.) Limited's ('EIHPL' or 'the Company') association with its parent company, Jahangir Siddiqui & Co. Ltd. ('JSCL'). The Company has made investments in LPG Storage and Oil Marketing businesses through its subsidiaries- JS Petroleum and Quality 1 Petroleum, respectively. Lately, EIHPL has acquired 100% ownership of Quality 1 Petroleum (Pvt.) Ltd, an OMC with 30 operational pumps. JS Petroleum, however, is still at initial stages. Amidst Covid-19, the slowdown in economy and respective energy sectors has elongated materialization of envisaged strategy. Being an investment arm of JSCL, both projects are predominantly funded - through equity - by the parent company. However, these projects have a medium-term gestation period and require time to stabilize and become dividend yielding investments. Meanwhile, the Company has a trading portfolio of listed equity investments for steady dividend inflows. The Company has a strong financial profile, represented by 100% equity base.
The ratings are dependent on continued support from 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 holding company are critical. Excessive leveraging, leading to weak coverages and/or deteriorating profitability, will adversely impact the ratings.

About the Entity
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 the CEO of the Company. The principal activities of the Company are to invest in energy, petroleum and infrastructure projects.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.