Lahore, January 26, 2023 (PPI-OT):The ratings reflect Energy Infrastructure Holding (Pvt.) Limited’s (‘EIHPL’ or ‘the Company’) association with its parent company, Jahangir Siddiqui and Co. Ltd. (‘JSCL’). The Company has made investments in LPG storage and engineering sectors through its subsidiaries- JS Petroleum Ltd. and JS Engineering Investments (Pvt.) Ltd., respectively. JS Petroleum, however, is still in process of establishing an LPG storage terminal at Port Qasim and awaiting approval. Amidst economic challenges in the respective energy sector, the materialization of the envisaged strategy has been elongated.
The management is evaluating investment projects for JS Engineering. 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 strategic investment in the associated company and a trading portfolio of listed equity investments for steady dividend inflows. Materialization of long-term projects and envisioned strategies is anticipated to amplify the financial performance and investments portfolio. 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 for the ratings.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com