PACRA Maintains Entity Ratings of Energy Infrastructure Holding (Private) Limited

The ratings of Energy Infrastructure Holding (Private) Limited ('EIHPL' or 'the Company') reflect its strong association with its parent company, Jahangir Siddiqui & Co. Ltd. ('JSCL'). The Company has successfully diversified its investments across a wide array of sectors, ensuring a balanced and resilient portfolio. EIHPL has strategically invested in EFU General Insurance. Other investments are spread across various sectors, including LPG storage (via JS Petroleum Limited), and other industries such as insurance, sugar, glass, and fertilizer. Notably, JS Petroleum Limited is in the process of establishing a new LPG storage terminal at Port Qasim, which is expected to contribute significantly to the Company’s future growth. As the investment arm of JSCL, EIHPL primarily funds its investment projects through equity sourced from its parent company, enabling it to maintain a solid financial foundation. EIHPL has a well-established mechanism for overseeing investment management, monitoring processes, and making new investments, which is crucial for any holding Company. Investment decisions are primarily guided by the expertise and resources available within JSCL, which provides strong support and strategic guidance. EIHPL has developed and adheres to a prudent investment policy, designed to align its asset allocation with the goals and objectives of its investors. The policy ensures that investments are made in a manner that is both sustainable and consistent with the long-term financial vision of the Company. As of 9MCY24, the Company’s investment portfolio has shown a slight improvement of ~9.6%, reflecting positive growth in its asset base. The Company’s dividend income constitutes ~95% of total earnings, primarily from investments in the insurance sector and the sugar sector. Notably, dividend income saw an increase of ~67% during 9MCY24, signaling a positive shift in the financial health of the dividend-paying companies within its portfolio. In addition to dividend income, the Company benefits from other income streams, which provide additional liquidity and financial flexibility. The reduction in funding expenses has played a pivotal role in improving EIHPL’s debt profile. This has led to a significant enhancement of its interest coverage ratio, demonstrating the Company’s improved ability to service its debt obligations. Moreover, this has also contributed to a strengthened capital structure, further improving its financial stability. The realization of long-term projects and envisioned strategies is expected to further amplify the financial performance and investment portfolio. Continued support from the JSCL, remains a key rating factor, providing the financial backing and strategic guidance necessary for sustained growth and success in the coming years.
The ratings are dependent on continued support from the parent company. Realization of the envisioned investment plans and formalization of a strong and effective mechanism for monitoring performance and providing holistic direction as a holding company is critical for the ratings. The strong performance of portfolio companies and stable dividends remain important.

About the Entity
Energy Infrastructure Holding (Private) Limited is a wholly owned subsidiary of Jahangir Siddiqui & Co. Ltd. The Company was incorporated in 2008 as a private limited company under the Companies Ordinance, 1984 (now the Companies Act, 2017). The principal activities of the Company are to invest in energy, petroleum, and infrastructure projects. Syed Ali Hasham serves as the CFO and Company's Secretary. Mr. Muhammad Babar Din and Mr. Furqan Ahmed serve as the Company's Directors. While, Ms. NoorUlain is the CEO of the Company. She is assisted by a team of experienced professionals.