Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has announced the maintenance of the entity ratings of Engro Elengy Terminal (Private) Limited (EETPL). The terminal, boasting an impressive operational availability of 95% during the period, continues to benefit from technically sound operations and robust maintenance managed by Excelerate Energy (EE), the operations and maintenance operator. This high performance is a key source of operational reliability for EETPL.

According to Pakistan Credit Rating Agency Limited, EETPL enjoys a low business risk profile, supported by a long-term LNG services agreement with Sui Southern Gas Company (SSGC), ensuring guaranteed off-take. This agreement translates into stable revenue and cash flows, contingent on adherence to agreed operational parameters. Despite challenges within the sector, SSGC has consistently demonstrated timely payments, further bolstering EETPL’s financial stability. The company successfully repaid its project-related debt in December 2024, resulting in a deleveraged balance sheet.

Operational costs for EETPL are now entirely met through robust internal cash generation, with minimal reliance on short-term borrowings. The adoption of IFRS-16 has increased accounting leverage due to the recognition of leased assets and corresponding liabilities, yet it has had no material impact on the company’s net financial position. Overall, strong internal cash flows continue to enhance EETPL’s financial risk profile.

The ratings remain contingent on the smooth operations of the terminal and the conduct of the sole buyer, SSGC, with respect to timely payments to Engro Elengy Terminal.