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LAHORE: The Pakistan Credit Rating Agency (PACRA) has confirmed the entity ratings of Orient Power Company (Private) Limited, which operates a 212.7 MW combined-cycle, dual-fuel power generation plant, underlining its solid business profile. The plant, which began commercial operations in 2010, operates under a 30-year Power Purchase Agreement with the Central Power Purchasing Agency Guarantee Limited.
The company’s ratings benefit from sovereign guarantees ensuring cash flow stability, contingent upon meeting performance benchmarks such as a 90% availability factor and specific efficiency levels. These benchmarks have been consistently achieved, supported by operational management from GE Vernova International LLC.
Orient Power’s primary fuel is gas/Re-gasified Liquefied Natural Gas, sourced from Sui Northern Gas Pipelines Limited, with High-Speed Diesel as a backup. Despite lower electricity dispatch levels due to decreased demand, the company reported a significant sales revenue of PKR 13,233 million and a net profit of PKR 2,709 million for the nine months ending FY25.
Financial adjustments were noted as the company’s leverage increased to 9.2% in the third quarter of FY25, primarily due to a rise in short-term borrowings. Shareholding changes include a reduction in Mahmood Textile Mills Limited’s stake and an increase in Mr. Nadeem Babar’s equity interest.
Maintaining operational performance and financial discipline remains crucial for sustaining these ratings, as emphasized by PACRA.