PACRA upgrades entity ratings of Saif Power Limited

News Image

MG News | March 24, 2022 at 11:32 AM GMT+05:00

0:00

March 24, 2022: The ratings reflect the strong business profile of Saif Power Limited (Saif Power) emanating from the demand risk coverage under the Power Purchase Agreement signed between the Central Power Purchasing Agency (CPPA-G) and the company.

Meanwhile, the Implementation Agreement provides a sovereign guarantee for cashflows, given adherence to agreed performance benchmarks. Saif Power continues to meet its availability (88%) and other performance benchmarks. Fuel supply risk is considered low as they procure RLNG from SNGPL with good credit terms. Moreover, the company has arrangement in place to procure High-Speed Diesel (HSD), the backup fuel, from Shell Pakistan.

The ratings stemmed from the fact that the long-term debt of the company was fully paid successfully in March-2020. As a result of the revision in agreement with CPPA-G, the Company’s profitability indicators will be slightly lower going forward. Short-term borrowing lines are available and mainly used to fund any shortfall in working capital requirements. There is ample cushion available in short-term lines.

Given the liquidity situation, the company managed to sustain the utilization at 52%. Settlement of overdue receivables is crucial. As a key point of MOU with GOP, Saif Power received the first instalment of 40% of pending receivables from the off-taker.

Sustained good financial discipline and upholding strong operational performance in line with agreed performance levels remain important. Accumulation of circular debt would pose threat to the company’s ability to continue with this practice. However, the management remains committed to sustain improvement in management of commercial obligations reflected by the timely and fully repayment of long debt.

PACRA

Related News

Name Price/Vol %Chg/NChg
KSE100 157,382.98
172.25M
0.77%
1205.16
ALLSHR 96,394.63
771.49M
0.80%
764.24
KSE30 47,984.39
121.81M
0.64%
305.92
KMI30 231,812.24
143.32M
0.93%
2130.02
KMIALLSHR 64,851.43
343.63M
0.75%
484.66
BKTi 42,273.38
67.91M
0.84%
350.58
OGTi 31,741.07
8.89M
0.02%
5.28
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 117,490.00 118,295.00
116,115.00
1665.00
1.44%
BRENT CRUDE 67.60 68.01
67.50
-0.35
-0.52%
RICHARDS BAY COAL MONTHLY 84.00 0.00
0.00
-0.40
-0.47%
ROTTERDAM COAL MONTHLY 93.50 93.50
93.50
0.15
0.16%
USD RBD PALM OLEIN 1,106.50 1,106.50
1,106.50
0.00
0.00%
CRUDE OIL - WTI 63.32 63.82
63.24
-0.73
-1.14%
SUGAR #11 WORLD 16.23 16.59
16.23
-0.33
-1.99%

Chart of the Day


Latest News
September 18, 2025 at 11:26 AM GMT+05:00

Pakistan, China vow stronger economic ties


September 18, 2025 at 11:13 AM GMT+05:00

CDNS revises profit rates on savings schemes


September 18, 2025 at 11:09 AM GMT+05:00

BOP hints at possible share buyback if stock remains undervalued


September 18, 2025 at 10:47 AM GMT+05:00

National Savings Schemes see over Rs44bn inflow in July



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg