Karachi: Awan Trading Company (Pvt.) Limited continues to hold a stable credit rating amidst a volatile global coal market, reflecting its strong operational history and market presence in the sectors of cement, textile, steel, and power, as per recent assessments.

According to The Pakistan Credit Rating Agency Limited, Awan Trading has effectively managed its operations and market strategies to navigate the shifts in coal prices and consumption trends. During the fiscal year 2024, international coal prices showed a significant drop from their peak, with the average price per ton falling to USD 114, a stark recovery from the previous year’s high of USD 301 per ton. This price adjustment has allowed Awan Trading to increase its coal imports dramatically by approximately 132% compared to the first nine months of FY23, enhancing its market share and consumer base.

Despite the global downturn in coal prices which affected net revenues—only witnessing an 8% increase in the first nine months of FY24—Awan Trading’s strategic stock management and diverse supplier base in Indonesian, South African, and Russian coal have enabled it to maintain a robust supply chain. The company also reported a notable increase in sales volume over the years, which has been a critical factor in supporting its credit rating.

Currency fluctuations and the dynamic pricing of coal internationally remain significant risk factors for Awan Trading. However, the company has successfully mitigated these risks by passing on price impacts to consumers and maintaining adequate coal reserves in rented and custom bonded warehouses. Additionally, the company has utilized its banking facilities effectively to ensure liquidity, further supplemented by investments in both short-term and long-term financial instruments.

As Awan Trading continues to diversify its product lines and enhance its operational efficiencies, the outlook for maintaining its creditworthiness appears positive, with potential for margin recovery as global coal prices stabilize.