The Pakistan Credit Rating Agency Limited
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Andleeb Zahra

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PACRA updates the entity ratings of Pakistan International Bulk Terminal

Rating Type Entity
(07-Jun-24 )
(16-Jun-23 )
Action Maintain Maintain
Long Term A A
Short Term A2 A2
Outlook Stable Developing
Rating Watch Yes Yes

The Ratings draw comfort from sponsors' extensive association with the related business "Marine Group of Companies". The Pakistan International Bulk Terminal Limited (“PIBT” or “The Company”) has secured a distinguished position in its operating segment due to its strategic importance in the Power and Cement sector. With a fully automated infrastructure, the Company's annual capacity hovers around 12 million MT for inbound coal handling and 4 million MT of outbound clinker and cement handling. During 9MFY24 PIBT handled 5.3mln tons of coal cargo ((MFY23: 3.89mln tons, 9MFY22: 6.1mln tons) depicting a rise of approx. 36% in volume handling as compared to SPLY. Terminal utilization as of 9MFY24 reported to be 55%. Going forward, the capacity utilization is expected to rebound as coal demand from power plants increases in summer season, as well as the dispatches from cement sector has started to pick up its pace. The Company was able to regain its business volumes and made timely repayments to the foreign lenders. PIBT topline clocked to PKR 11.6bln showing a growth of 70% as compared to SPLY due to uptick in the volumes handled, which also provides comfort to the assigned Ratings. The bottom line of PIBT has turned green and posted a net profit of PKR 1.39bln [9MFY23: loss of PKR (2.58bln), 9MFY22: loss of PKR (151)mln]. Ratings take cushion from the fact that the Company has managed to report healthy cashflows which will enable the Company to make the repayments in a timely fashion. The capital structure remains comfortable despite hefty long-term borrowings and is improving due to timely repayments. Major demand vests in the power producers followed by the domestic cement landscape. Since reduced competition in the market because of suspension of coal handling at KPT boded well for the Company. However with government's initiatives towards indigenous coal-based power plants and use of Afghani coal for the cement sector, re-instigated competition, hence remain critical for the ratings.
The Ratings are dependent upon upholding of strong business profile amidst unforeseen changes in the competitive landscape and the Company’s ability to successfully handle cargos through fully automated facility. Rating take comfort from the fact that coal demand from Power sector will gain momentum in summers. Self-sufficiency in meeting debt obligations is the key factor, which may be supplemented by extended support if need be.

About the Entity
Pakistan International Bulk Terminal Limited (PIBT) was incorporated in March 2010, got listed on the Pakistan Stock Exchange in 2013 and commenced its commercial operations on July 3, 2017. The company operates on a "build, operate and transfer" (BOT) model at Port Qasim Authority for the provision of terminal handling services for Coal, Clinker, and Cement for a period of 30 years. Ownership of the company vests with Premier Mercantile Services (Pvt.) Limited (PMS) (~43%), which is the flagship Company of the “Marine Group of Companies” is acting as an Investment arm. Mr. Haleem Ahmed Siddiqui is the Chairman of the Board. He, along with his family, collectively own PMS. Mr. Haleem Siddqui has over ~50 years of experience in marine-related services. He joined Pakistan Merchant Navy in 1959 and commanded various vessels till 1971. He was also the founding Chairman of the Pakistan International Container Terminal (PICT). Mr. Sharique Azim Siddiqui is the CEO of PIBT. He is assisted by a team of qualified professionals

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