Sindh Engro Coal Mining Company Limited is a public unlisted company, incorporated in Pakistan on October 15, 2009. The Company has its registered office at The Harbor Front Building, Clifton, Karachi.

The Company had commenced an initial feasibility study of the project in November 2009 through a team of International Consultants and local experts to confirm the technical, environmental, social and economic viability of the Project. The study was carried out on an area of 79.6 sq. km allocated to the Company in Thar Coalfield which was approved by the Technical Committee of the Government of Sindh on August 31, 2010.

The Company was formed under a Joint Venture Agreement, dated September 8, 2009, between the Government of Sindh (GoS), Engro Energy Limited (EEL) [formerly Engro Powergen Limited (EPL)] and Engro Corporation Limited for the development, construction and operations of an open-cast lignite mine in Block II of Thar Coal Field. The Company declared Commercial Operations Date (COD) for Phase I on July 10, 2019, and subsequently commenced coal supply to Engro Powergen Thar (Private) Limited. It further entered into Coal Supply Agreements with Thal Nova Power Thar (Private) Limited and Thar Energy Limited for the annual supply of 1.9 million tonnes of coal each, and achieved COD for Phase II on October 1, 2022.

The Company’s ordinary shares, ~91.5% of the total equity, are owned by Government of Sindh (~54.70%), Engro Energy Limited (~11.90%), Thal Limited (~11.90%), Habib Bank Limited (~9.50%), HUBCO (~8%), and CMEC Thar Mining Investments LTD (~4%). While preference shares, ~8.5% of the total equity, are owned by Huolinhe Open Pit Coal (HK) Investment Co. Ltd (100%).

The Government of Sindh's majority stake reflects a long-standing provincial commitment to Thar's coal development, while the co-investment of diversified groups — Engro Corporation Limited (ECorp), has its stake in the company through its subsidiary company, Engro Energy Limited, Thal Limited and HUBCO. — adds decades of uninterrupted presence across Pakistan's energy, industrial, and financial landscape. This blend of public ownership and seasoned private sponsorship gives the Company's shareholding structure a steady, long-horizon character.

The Company's sponsors bring a broad base of commercial and technical experience across coal mining, power generation, and large-scale energy project execution, led by Engro Energy and Hub Power Company, complemented by Thal Limited's industrial and engineering depth and CMEC Thar Mining's international mining expertise. This mix places SECMC's ownership within a network well versed in complex, capital-intensive energy and mining ventures.

The sponsor group carries notable financial standing, listed conglomerates with diversified earnings, a leading independent power producer, and a provincial government with fiscal interest in Thar's development. The Government of Sindh's continued backing, given Thar coal's strategic weight in its priorities, adds further depth. Overall, the configuration reflects a sponsor base with considerable financial resource.

The Board of Directors of SECMC comprises twelve experienced professionals, with five members representing the Government of Sindh, two nominees from Engro Corporation, two members from Thal Limited, and one board member each nominated by Habib Bank Limited, HUBCO, and Huolinhe Investment Company, all appointed on November 24, 2025, reflecting strong institutional backing and promoting a balanced governance structure.

Mr. Amir Iqbal serves as the Chief Executive Officer with over 35 years of experience in general management across Pakistan, Australia, and Africa; Mr. Agha Wasif Abbas serves as the Chairman (Non-Executive Director) representing the Government of Sindh with extensive experience in government service and public sector administration; Mr. Najam Ahmed Shah is a Non-Executive Director representing the Government of Sindh with over two decades of experience in government service spanning energy and health sectors, having held key administrative positions including Secretary Finance in Sindh; Dr. Mahesh Kumar Malani represents the Government of Sindh; and other directors include Mr. Muhammad Tayyab Ahmad Tareen (Thal Ltd), Mr. Sami Aziz (Habib Bank Ltd), Mr. Ahsan Zafar Syed (Engro), Mr. Muhammad Kamran Kamal (HUBCO), Mr. Muhammad Salman Burney (Thal Ltd), Mr. Shahab Qamar Ansari (GoS), Mr. Fayaz Ahmed Jatoi (GoS), and Mr. Bao Jianjun (Huolinhe Open Pit Coal (HK) Investment Co. Ltd), all comprising highly qualified professionals with substantial local and international experience across various areas of the industry.

During CY25, the Board held multiple meetings to address the strategic decisions of the company, and there are six committees at the Board level, namely the Audit Committee and the Risk Management Committee chaired by Mr. Muhammad Tayyab Ahmad Tareen, the Human Resource Committee chaired by Mr. Ahsan Zafar Syed, the Procurement Committee chaired by Mr. Fayaz Ahmed Jatoi, the CSA Committee, and the Expansion Committee, with the Terms of Reference of all committees formally defined, maintaining a strong control environment over the organization.

A. F. Ferguson & Co., a member firm of the PwC network, is the auditor of the Company and expressed an unqualified opinion on the Company's financial statements for the year ended December 31, 2025, stating that the financial statements "give a true and fair view of the state of the Company's affairs as at December 31, 2025.

The Company's organization is structured around the effective functioning of major departments, including Finance and IT, HR & Admin, Site Operations, Mine Tech & Expansion, Water Resources, Commercial Operations, and Internal Audit, with each department headed by an experienced professional reporting directly to the CEO.

Mr. Amir Iqbal is the Chief Executive Officer of the Company with over 35 years of experience in general management across Pakistan, Australia, and Africa, having managed various global and local mega brands and led cross-functional teams to deliver business results; Mr. Muhammad Muddasir is the Chief Financial Officer, an FCA with overall experience of 22+ years; and other key management personnel include Mr. Muhammad Azhar, Mr. Faisal Iqbal Siddiqui, Mr. Haseeb Shaukat, and Ms. Sabeen Shah.

To oversee the management of the company, SECMC has constituted an internal management committee comprising executives from SECMC and subsidiaries, with the purpose of the committee being to drive strategic decision-making for the company and formulate new strategies to deal with developments that the company encounters.

SECMC uses SAP as its Enterprise Resources Planning Software, specifically the FICO (Finance Module), MM (Material Management), and S&D module (Sales and Distribution) for maintaining its financial database, with SAP FI made up of submodules that are often used to generate reports of accounts receivables, accounts payables, asset accounting, general ledger accounting, and bank accounting.

SECMC maintains an effective control environment with defined policies and procedures, and the Company's internal audit function performs regular reviews on the financial, operational, and compliance controls and reports directly to the audit committee for all critical issues.

Pakistan's coal reserves are estimated at ~186.0bln MT, with ~99% concentrated in Sindh — anchored by the Thar coalfield, which alone accounts for ~175.0bln MT of proven, indicated, inferred, and hypothetical reserves. Alongside this, coal import value eased to USD~396mln in 5MFY26, down ~8.0% YoY, as weaker dispatch from imported coal-based power plants and a shift in the generation mix reduced fuel requirements. The broader demand picture reflects a similar trend, with overall coal consumption moderating from ~28.0mln MT in FY21 to ~24.7mln MT in FY24, and further to ~16.2mln MT in 9MFY25 (9MFY24: ~17.3mln MT), as the energy mix continues to evolve alongside efficiency gains and the growing uptake of alternative sources.

SECMC's project is being developed in Block II of Thar Coalfield with total reserves of approximately 1.6 billion tonnes which is ~1% of the total reserves in the Thar region of Sindh, and SECMC holds the lease for Block II, where the resource base is considered adequate to sustain multi-decade power generation operations. Standing as Pakistan's foremost coal producer, the company manages the country's first open-pit lignite mine with a current annual mining capacity of 7.6 million MT per annum, dedicated to supplying high-quality lignite coal to power producers across Pakistan.

SECMC's revenues are generated under the tariff framework administered by the Thar Coal & Energy Board (TCEB). Revenue is earned through Coal Supply Agreements (CSAs) with Engro Powergen Thar (Private) Limited (EPTL), Thar Energy Limited (TEL), and ThalNova Power Thar (Private) Limited (TNTPL), and comprises capacity payments, energy payments, and other ancillary income, including delayed payment interest on overdue receivables. In October 2025, TCEB issued its Initial MYT determination, establishing a levelized reference tariff of USD 34.77 per tonne for the 30-year tariff period. The determination also introduced an annual adjustment of tariff mechanism for historical over-recoveries. For 1QCY26, the Company reported net revenue of PKR 24,808 million, reflecting a 7.6% increase over the corresponding period last year. Full-year CY25 revenue stood at PKR 95,386 million, representing a 5.8% decline from CY24, primarily due to a significant reduction in delayed payment interest income as collections from power off-takers improved and overdue balances declined.

In 1QCY26, SECMC reported a gross profit of PKR 10,866 million, translating into a gross margin of 43.8%, largely stable compared to 44.1% in 1QCY25. Operating profit stood at PKR 10,891 million with a margin of 43.9%, while net profit for the period was PKR 7,739 million, representing a net margin of 31.2%. On a year-on-year basis, absolute profitability improved by 6.8% in gross profit and 5.8% in net profit, driven primarily by higher revenue from Pre-COD sales and improved operational efficiency following the transition to a self-O&M model for non-mining activities. Margins remained under modest pressure from elevated power and fuel costs, though the Company's ongoing cost optimisation initiatives, including fleet modernisation and localisation, are expected to support margin resilience going forward.

Pakistan has long relied on imported coal to meet domestic energy demand—an approach that, while preferable to imported oil from a cost perspective, imposes a substantial drain on foreign exchange reserves. The development of Thar Coalfield's Block II is enabling a strategic pivot toward indigenous resources. The company is in the process of expanding its capacity from 7.6 to 11.2 million tonnes per annum to cater to Lucky Electric Power Company's off-take requirements, further reducing reliance on imported fuel. Thar coal remains among the most cost-effective baseload energy sources, delivering significant foreign exchange savings. On the sustainability front, SECMC has achieved the world's first Alliance for Water Stewardship (AWS) Gold Certification for a mining operation, pioneered wastewater reuse, and established Pakistan's first Flora Conservation Station in Thar to protect biodiversity.

The Company's working capital remains constrained by the power sector's circular debt, resulting in elevated receivables. As of March 31, 2026, trade receivables stood at PKR 73.3 billion, contributing to high gross and net working capital days of 271 days, consistent with the CY25 average. Inventory levels increased to PKR 2.2 billion from PKR 0.7 billion at Dec'25 while trade payables remained insignificant, underscoring the Company's limited reliance on supplier credit and its dependence on internally generated funds to finance operations, while the current ratio held steady at 1.9x. The Company actively manages its working capital cycle through a mix of internal cashflows and short-term borrowings, which declined to PKR 14.9 billion in Mar'26 from PKR 16.7 billion in Dec'25, reflecting proactive liquidity management.

The Company maintains a healthy coverage profile, demonstrating a strengthened capacity to service its debt obligations. For 1QCY26, EBITDA stood at PKR 13,021 million, with the EBITDA-to-finance cost ratio improving to 5.7x from 5.3x in CY25, driven by a reduction in finance costs attributable to a decline in interest rates and a lower debt burden following partial repayments. Free Cash Flow from Operations (FCFO) for 1QCY26 stood at PKR 12,307 million, translating into a FCFO-to-finance cost ratio of 5.4x, reflecting the Company's solid operational cash generation. The Debt Payback period improved to 1.6 years in 1QCY26 from 1.9 years in CY25, further underscoring the Company's enhanced ability to service its debt obligations efficiently.

The Company's leverage continues to improve, driven by disciplined debt repayment and growth in shareholders' equity. Total borrowings stood at PKR 79.2 billion as of March 31, 2026, compared to PKR 85.6 billion in CY25 and PKR 87.1 billion in CY24, while shareholders' equity increased to PKR 118.3 billion from PKR 114.6 billion in CY25 and PKR 80.2 billion in CY24. Consequently, the total borrowings-to-capital ratio improved to 40.1% in 1QCY26, down from 43.2% in CY25 and 56.4% in CY24, with the Company remaining fully compliant with all financial covenants. As of June 30, 2026, approximately 58% of the Phase I foreign currency loan has been repaid, while the Phase I local currency loan is 50% repaid. Phase II local currency loans have been reduced by 17% through scheduled repayments.