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. Company revenues in FY20 swell on the account of high demand for Oil tankers. However, revenues declined post covid as AFRA rates settle down, revenues are also exposed to Volatility in BDI index. The Corporation also operates through chartered-hire vessels to stimulate business volumes. PNSC is planning to acquire two secondhand vessels, both for the oil segments within the current fiscal year, namely one Aframax Crude Oil Tanker (105,000 DWT), one LR-1 Product Carrier (75,000 DWT). Procurement of ships is 90% financed through external debt. On the other hand, additions in managed fleet are expected to boost up the revenue base by their revenue contribution in existing revenue base of 11 vessels. and generate better 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, prudent financial discipline alongside growth trajectory 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 eleven vessels, comprising five bulk carriers and six oil tankers, with a total cargo capacity of 831,711 DWT. Mr. Shakeel Ahmed Mangnejo was the Chairman and CEO. And the position is vacant as it will be nominated by the Government of Pakistan.