The Pakistan Credit Rating Agency Limited
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Anam Waqas Ghayour

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PACRA maintains Entity Ratings of Halmore Power Generation Company Limited

Rating Type Entity
(22-Mar-23 )
(22-Mar-22 )
Action Maintain Upgrade
Long Term AA- AA-
Short Term A1 A1
Outlook Stable Stable
Rating Watch - -

Halmore Power Generation Company Limited (the Company) is an independent power producer (IPP), operating a Combined Cycle gas turbine plant on a build-own operate (BOO), having gross capacity of 225MW located at Bhikki Sheikhupura. The plant achieved its commercial operations in June 2011 with its PPA valid till Feb'2042. Mr. Karim Ud Din is the major sponsor of the Company. The Company has an O&M with General Electric and fuel supply agreements with SNGPL and PSO. The ratings of Halmore take comfort by the Power Purchase Agreement signed between Power Purchaser and Halmore which ensure capacity payments as well as guaranteed electricity offtake – given adherence to agreed parameters. Further, cushion is drawn from low operational risk, a result of established performance credentials of GE - the O&M operator. The required availability for Halmore Power under the PPA is 90%. During the period average plant availability remained in accordance with the agreed parameter. The plant generated 109,863.09 MW of net electrical output for the six-month ended Dec 2022. Net income recorded during 6MFY23 was PKR 1,763mln (6MFY22: PKR 1,096mln, 6MFY21: PKR 1,639mln). The company successfully paid off its Long-Term project related debt in June 2021 resulting in a favorable impact on its financial risk profile. As on Dec 2022, the debt profile comprises short-term borrowings only, which have been availed to meet working capital requirements, mainly due to delayed payments from the off taker. The Company has equity base of PKR 20,196mln whereas leveraging stands at 38.2% at end 1HFY23.
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.

About the Entity
Halmore Power Generation Company Limited, an Independent Power Producer (IPP) with gross capacity of 225 MW, operating under 2002 power policy, is a combined gas cycle turbine plant with gas as primary and HSD as secondary fuel. Mian Karim ud Din owns 99.99% shares of the company. The four-member Board of Directors (BoD), including one executive director, is representative of the sponsoring family. Mr. Zaheer Ahmed is the Chief Executive Officer, he has over twenty-six years of experience in construction, operation and maintenance of power generation and transmission.

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