Karachi: The Pakistan Credit Rating Agency Limited announced that it has upheld the entity ratings of Engro Elengy Terminal (Private) Limited (EETPL), reinforcing the company's robust business profile as the pioneering LNG terminal operator in Pakistan. This decision underscores the strategic importance of EETPL in the country's energy landscape, bolstered by the government's commitment to LNG imports.
EETPL, a venture backed by Engro Corporation Limited and Vopak LNG Holding B.V., boasts a Floating Storage and Regasification Unit (FSRU) with a guaranteed regasification capacity of 630 MMSCFD and a peak capacity of 690 MMSCFD. This infrastructure supports a stable revenue stream, reflected in the company's PKR 15.17 billion topline over the first nine months of the 2024 calendar year.
Operationally, EETPL achieved a terminal availability of 95%, attributed to its technical operations and maintenance managed by Excelerate Energy. This high availability underscores the terminal's operational reliability, a crucial factor in maintaining its low business risk profile.
A pivotal element of EETPL's financial stability is its long-term LNG services agreement with the Sui Southern Gas Company (SSGC), which guarantees off-take and ensures stable revenue and cash flows. Despite sectoral challenges, SSGC has consistently met its payment obligations, further reinforcing EETPL's financial health.
The company successfully repaid its project-related debt by December 2024, achieving a deleveraged balance sheet. Its operational costs are now fully covered by strong internal cash generation, with minimal reliance on short-term borrowings. While the adoption of IFRS-16 increased accounting leverage, it did not materially affect EETPL's net financial position.
The ratings are contingent upon the continued smooth operation of the terminal and timely payments from SSGC. EETPL's strong internal cash flows remain a cornerstone of its financial risk profile, ensuring the company's stability in the face of sector-specific challenges.