Analyst
Ahmad Faraz Arif
ahmad.faraz@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Entity Ratings of Energy Infrastructure Holding (Private) Limited
Rating Type | Entity | |
Current (03-Feb-22 ) |
Previous (03-Feb-21 ) |
|
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, the Company has disposed off 100% of shareholding in Quality 1 Petroleum (Pvt.) Ltd, an OMC. The management is evaluating newer investment projects. JS Petroleum, however, is still at initial stages. Amidst economic challenges in the respective energy sector, the materialization of envisaged strategy has been elongated. Being an investment arm of JSCL, investment projects are predominantly funded - through equity - by the parent company. However, the current projects of the Company 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 primarily by equity-base and minimal debt.
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.
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. Muhammad Babar Din is the Chairman of the BoD. While, Mr. Hashim Abubakar has been recently appointed as the CEO of the Company. The principal activities of the Company are to invest in energy, petroleum, and infrastructure projects.