Pakistan International Bulk Terminal Limited, herein referred to as "PIBT" or "the Company", was incorporated in 2010. It was listed on the Pakistan Stock Exchange in 2013.

PIBT was incorporated under the Companies Ordinance, 1984 (now the Companies Act, 2017) in March 2010 as a wholly-owned subsidiary of Pakistan International Container Terminal Limited (PICT). The Company is a part of the "Marine Group of Companies" that has a network of 15 related companies under its umbrella. Premier Mercantile Services (Pvt.) Ltd. (PMS) is the flagship company of the group.

The primary business of the company is terminal management for the handling the import of coal and clinker/cement exports. Major demand for imported coal is being generated from cement manufacturers and coal power plants. In 2010, the Company entered into a Built Operate Transfer (BOT) contract with Port Qasim Authority (PQA) for the construction, development, operations and management of a coal and clinker/cement terminal at Port Muhammad Bin Qasim. The contract is for a period of thirty years. The Company commenced its commercial operations in July 2017. PIBT has the annual capacity to handle-12mln tons of coal import and-4mln tons of cement/clinker export.

Premier Mercantile Services (Private) Limited is the major shareholders of the Company and hold -43.3%. General public holds -41.46% of the shareholding of the Company. Premier Mercantile Services (Private) Limited is the investment arm of the Marine Group of companies.

Initially, the Company was a wholly owned subsidiary of PICT, which at that time was owned by the Marine Group and other companies. The Company's shareholding has evolved over the period, and is expected to remain stable, going forward.

The Marine Group of companies is a large and diversified cargo handling and logistics group in Pakistan. The group has been in business since 1964. Considering its operating history and experience in the business, sponsors' understanding of the terminal handling business is considered strong.

Premier Mercantile Services - the major shareholder, is an investment wing of the Marine Group. PMS has shareholding in the other related businesses as well, as it acts as an investment vehicle for the group. The company holds ~22% stake in PICT. The other shareholder, JS & Company, is one of the top conglomerates of the country. The sponsors of the company have historically demonstrated support through subscription of right issue and guarantees.

Board of Directors consists of seven members, out of which two are independent directors, while three are non-executive directors. Capt. Haleem Ahmad Siddiqui is the Chairman of the Board.

Capt. Haleem Ahmad Siddiqui, the Chairman of the Board of Directors, is a seasoned professional of the industry. He has an experience of over five decades. He is also the Chairman of Marine Group of Companies. Capt. Siddiqui has served in the Pakistan Flag Vessel and was instrumental in establishing the Marine Group of Companies. Other members of the Board are also highly qualified professionals and have sufficient experience in managing the company's affairs.

Two sub committees on the Board exist; (i) Audit Committee & (ii) HR & Remuneration Committee. Adequate attendance was noted in the Board and its sub committees' meetings while minutes have been properly documented.

The external auditors of the company are M/s EY Ford Rhodes & Chartered Accountants, one of the big four firms. It is QCR rated and part of the category A, as per the State Bank of Pakistan's panel of auditors. It expressed an unqualified opinion on the financial statements for FY24.

A well-defined yet lean organizational structure exists. The organization is split into three broad divisions: (i) Operations (ii) Engineering and (iii) Support. Among these divisions, functions are segregated into various departments wherein clear lines of responsibility are defined for each cadre. The Company's head office is situated in Karachi city, while the terminal is situated at Port Qasim. Responsibilities are clearly divided among the different departments heads.

Mr. Sharique Azim Siddiqui-the CEO of the Company, has an overall experience of more than two decades.He also served as CEO of Marine International Container Terminal and headed the implementation of the project which comprises of an Inland Container Depot in Lahore with direct Railways connectivity for operating dedicated freight trains between Karachi and Lahore. He currently serves as the Managing Director of Marine Group of Companies. He did his Bachelors and Masters of Arts in Economics from Tufts University, Boston, USA. He is supported by an experienced and able management team.

All department heads are responsible for management of their departments. Mr. Asad Zaidi manages the operations division, whereas engineering related matters are handled by Mr. Basit Alvi, GM Engineering. Mr. Arsalan Iftikhar Khan, FCA, is the CFO of the Company. Mr. Arsalan posses 24 years experience of corporate finance, taxation, budgeting and planning.

Fully mechanized infrastructure with a robust MIS, to assist reporting needs of the management, strengthens the control environment.

The corporate structure of the Company is diverged into various departments, each having an effective Internal Control System. MIS and technological infrastructure is strong with a high degree of automation, positively impacting the overall control environment of the Company.

Total country demand for imported coal hovers in the range from 13mln MT to l6mln MT per annum and is majorly generated from the power plants and cement sector that depend on imported coal. The lately undertaken capacity expansions by cement players are expected to come into play and increase demand of both local and imported coal. In light of the government's initiative to reduce the import bill, a shift towards locally supplied coal remains a risk.

PIBT has the privilege of being the only commercial terminal operator for providing handling services to local coal importers. However, in light of the weakened demand environment, strategic diversification into alternative business ventures is expected to provide additional support and stability to in its market share.

The Company’s core revenue base continues to be dominated by coal handling services, with clinker and cement handling contributing a relatively minor portion to the overall topline. During 9MFY25, the Company posted revenue of PKR 7,442 million, reflecting a significant decline of 36.2% compared to PKR 11,673 million reported during 9MFY24. This contraction in revenue is primarily attributable to a considerable decrease in cargo volumes handled across the Company’s operations, which fell to 3,530,597 metric tons in 9MFY25 from 5,366,521 metric tons in the corresponding period (9MFY24). The lower throughput is indicative of a subdued market demand environment and operational challenges that affected volume during the period. Moreover, due to the regulatory tightening against Independent Power Producers (IPPs) and shifts in the government’s energy purchase policy have impacted the shipments for the Companies. Secondly, the decrease in handled volume was attributable to the temporary operational disruption caused by the fire incident at the terminal. During the handling of export cargo, the conveyor belt was damaged, resulting in a temporary disruption of the operations. 

During 9MFY25, the Company’s financial performance exhibited considerable weakness, culminating in a net loss of PKR 263 million, in stark contrast to a net profit of PKR 1,392 million reported in the corresponding period of the previous fiscal year (9MFY24). The sharp deterioration in profitability was primarily driven by a substantial decline in revenue, coupled with only moderate levels of operational efficiency. These factors collectively exerted downward pressure on profitability metrics, leading to a significant contraction in both gross and operating margins. The gross margin fell to 18.0% in 9MFY25 from 36.3% in 9MFY24, while the operating margin declined sharply to 6.6%, compared to 32.2% recorded in the same period last year. The compression in margins reflects the Company's reduced ability to absorb fixed costs amid lower volumes and points to increased operational strain under subdued market conditions.

The volumes handled by PIBT could face potential challenges due to the increased use of Thar coal and the import of Afghan coal by road, which may reduce the demand for services at the terminal. Additionally, on November 19, 2024, a fire incident occurred at the PIBT terminal during the discharge of a coal cargo, causing significant damage to a portion of the terminal’s infrastructure. The cause of the fire was beyond PIBT's reasonable control, and the incident has partially affected the terminal's ability to meet its obligations. As a result of the damage, operations at PIBT were temporarily disrupted. However, as per the PSX notice issued on December 6, 2024, the Port Qasim Authority has approved the handling of PIBT's coal vessels at Marginal Wharves 3 & 4 at Port Qasim until normal operations at PIBT are fully restored. The incident has had an impact on PIBT's performance, but the temporary arrangement at Port Qasim is expected to help mitigate the operational disruptions until repairs are completed.

PIBT’s working capital requirements primarily arise from financing through trade receivables. These receivables are utilized for two key purposes: (i) servicing the fixed, project-related debt obligations and (ii) meeting variable royalty payments to Port Qasim Authority (PQA). The Company’s strategy remains focused on repaying its debt obligations through internally generated cash flows. However, during the period under review, a decline in handling volumes adversely affected revenue generation. Consequently, while debt repayments were made on time, the Company deferred its payments to PQA. This deferment has led to an increase in the markup burden, which currently stands at approximately 11–12%. Prolonged delays in payments are not sustainable, as they contribute to accumulating financial charges and pose a risk to operational stability. To mitigate this, the Company must enhance and maintain its handling volume at approximately 7–7.5 MT considered the breakeven threshold to ensure operational continuity and meet its financial obligations more effectively.

The Rating Team apprised the RC members that the Company’s coverage indicators have weakened during 3QFY25, primarily on account of the net loss and a significant decline in profitability, which adversely impacted both EBITDA and Free Cash Flows from Operations (FCFO). As a result, the Company’s ability to service its financial obligations deteriorated. Interest coverage declined to 1.3x in 3QFY25, compared to 2.6x in the corresponding period of the previous year, largely due to elevated finance costs. Similarly, the debt service coverage ratio also reflected a downward trajectory, decreasing to 0.4x in 3QFY25 from 1.1x in 3QFY24, signaling increased pressure on the Company’s financial flexibility and debt repayment capacity.

The Company’s total borrowings declined to PKR 8,711 million in 9MFY25, down from PKR 11,499 million in the corresponding period of the previous year (9MFY24). This reduction in debt is primarily attributable to the scheduled repayment of both foreign and local loan facilities. As a result, the Company’s leverage position improved, with the debt-to-equity ratio standing at approximately 32.4% as of March 2025, compared to 39.6% in 9MFY24. The deleveraging reflects a strengthened capital structure and improved financial discipline.