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Lahore, March 24, 2023 (PPI-OT):Saif Power Limited (Saif Power) has been established to set up and operate, combined cycle dual fuel, 225 MW net power generation plant, for generation of electricity and onward sale of electricity to the Power Purchaser (CPPA-G).
The plant achieved its commercial operations date (COD) on April 30, 2010. The ratings reflect strong business profile of the Company emanating from the demand risk coverage under 30-year Power Purchase Agreement (PPA) signed between CPPA-G and the Company starting from the COD. Meanwhile, the Implementation Agreement provides sovereign guarantee for cash flows, given adherence to agreed performance benchmarks.
The Company continues to meet its performance benchmarks. Comfort is drawn from General Electric International Inc. (G.E) which is the Operations, Maintenance and Service (O and M) Contractor having both local and international experience in the energy sector.
The primary fuel of the plant is Gas/Regasified Liquefied Natural Gas (RLNG) which is supplied by Sui Northern Gas Pipeline Limited (SNGPL) and HSD is the backup fuel. Thus, fuel supply risk is considered adequate, pertaining to the meaningful addition of RLNG in Pakistan’s fuel mix. During 9MCY22, company generated revenues of PKR ~20,223mln (9MCY21: PKR ~13,010mln) with a Net Income of PKR ~1,494mln (9MCY21: PKR ~1,233mln; CY21: PKR ~1,747mln).
The working capital requirements of the Company are fulfilled through mix of short-term borrowing and deployment of internal cashflows. Currently the Company has arranged working capital lines of PKR ~14.531bln out of which 54% (PKR ~7,813mln) had been utilized as of 9MCY22. Saif Power has successfully paid its project related debt in March’20.
Upholding operational performance in line with agreed performance levels would remain a key rating driver. Sustained good financial discipline and upholding strong operational performance in line with agreed performance levels remain important. However, the management remains committed to sustain improvement in management of commercial obligations reflected by the timely and fully repayment of project debt.
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
The post PACRA Maintains the Entity Ratings of Saif Power Limited appeared first on Business News Pakistan.