Islamabad, The Pakistan Credit Rating Agency Limited (PACRA) has maintained its entity ratings for Saif Power Limited (SPL), recognizing the company's robust operational framework and financial discipline within Pakistan's energy sector. SPL, an established player in the power generation field, operates a significant 225 MW net power generation plant, maintaining a strong business profile due to comprehensive agreements and strategic fuel supply management.
According to The Pakistan Credit Rating Agency Limited, Saif Power Limited's performance and strategic positioning are critically supported by a 30-year Power Purchase Agreement (PPA) with the Central Power Purchasing Agency (CPPA-G) and an Implementation Agreement that includes a sovereign guarantee, ensuring reliable cash flows contingent on performance benchmarks. The company's association with General Electric International Inc. for operations and maintenance further bolsters its operational credibility.
Despite a decline in revenue during the first nine months of the calendar year 2023 compared to the previous periods, SPL's adherence to strategic financial planning and expense management is evident. A notable shift in the accounting of overhaul expenses, guided by the Institute of Chartered Accountants of Pakistan (ICAP), and increased finance costs were key factors in the period's financial outcomes.
SPL's adept management of working capital, coupled with successful debt settlement strategies, underscores its commitment to financial stability. However, challenges such as potential delays in receivables and the broader issue of circular debt within the power sector remain concerns that require vigilant management.
Established in 2004 and operational since 2010, Saif Power Limited stands as a testament to sustained operational excellence and strategic growth in Pakistan's evolving power industry. With its listing on the Pakistan Stock Exchange in December 2014 and a diversified shareholder structure, SPL continues to leverage its industry expertise and strategic partnerships to navigate the complexities of the energy market.