Pakistan Credit Rating Agency (PACRA), has maintained the entity ratings for Engro Elengy Terminal (Private) Limited at “A+” for long term and “A1” for short term, while a “stable” outlook is forecasted for the company.
The agency had previously upgraded the company’s entity ratings to aforementioned, on February 27th 2018.
According to PACRA, The ratings reflect sustained operations of Engro Elengy Terminal (Private) Limited (EETPL), given revenues and cash flows are guaranteed by Sui-Southern Gas Company (SSGC), subject to adherence to agreed parameters.
“The business profile of EETPL is strong, emanating from GOP's commitment to manage prevailing energy crises in the country by way of imported LNG. Thus, a sizable and recurring stream of income is ensured,” added the agency.
As per a press release by PACRA, the ratings incorporate rapid developments in the industry owing to gas shortage in the domestic market.
“Engro Elengy continues to meet its availability (approximately 95%) – an outcome of technically sound operations and maintenance operator, Excelerate Energy (EE), is a key source of comfort in managing the plant's operations,” stated PACRA.
The credit rating agency added that a stable stream of revenue leads to build up of surplus cash, which after making committed payments to lenders would be distributed to sponsors regularly, as per policy, going forward.
Moreover, the ratings take significant support from EETPL's association with Engro Corporation Limited, which has demonstrated financial strength.
Adding to this, PACRA said that the ratings remain dependent on smooth operations of the terminal, and conduct of SSGC with reference to the timely payments to Engro Elengy Terminal. Meanwhile, debt service coverages and other financial related metrics must remain strong.
Engro Elengy Terminal (Private) Limited (EETPL) is a Private Limited Company that was incorporated in Pakistan on January 9, 2014, specifically for the purpose of establishing and operating an LNG Terminal for the receipt, storage and re-gasification of LNG. EETPL commenced its operations on March 29, 2015, as the first ever LNG Terminal Operator in Pakistan.
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