PACRA Maintains Entity Ratings of Saif Power Limited

The ratings of Saif Power Limited ("SPL" or "the Company") are a reflection of its established market position as a 225 MW net capacity power producer and its history of operational excellence. Operating a combined-cycle, dual-fuel facility, SPL has maintained a reliable track record of supplying electricity to the national grid via the Central Power Purchasing Agency (CPPA-G) since its commercial operations began on April 30, 2010. The Company's credit strength is fundamentally rooted in a 30-year Power Purchase Agreement (PPA), which effectively mitigates demand risk through long-term contractual certainty. This is further bolstered by the Implementation Agreement, providing a sovereign guarantee on cash flows, as the Company consistently satisfies all technical and performance benchmarks. Operational risk is significantly minimized through O&M partnership with General Electric International Inc. (G.E), ensuring the plant operates at peak efficiency. Furthermore, the Company maintains a resilient energy profile by utilizing RLNG supplied by SNGPL as its primary fuel source, with HSD acting as a strategic backup to ensure uninterrupted power generation.
To align with the national energy sustainability framework, SPL formalized amendments to its PPA and Implementation Agreement, adopting a 'Hybrid Take and Pay' tariff model. This restructuring, designed to lower the Capacity Tariff via component rationalization, necessitated a one-time waiver of all accrued Late Payment Surcharges (LPS) up to October 2024. Consequently, while the Company’s dispatch increased by ~48% to ~195 GWh during 9MCY25, the reduction in fixed capacity payments led to a temporary net loss of ~PKR 161 million. This deficit is a direct, non-recurring impact of the structural realignment and the surcharge waiver. SPL’s financial profile has been significantly bolstered by improved collections from the Power Purchaser. As of September 2025, trade receivables fell sharply to ~PKR 1,215 million from ~PKR 8,250 million, allowing the Company to retire its short-term debt. Consequently, borrowings declined to ~PKR 4,417 million (from ~PKR 7,746 million), and leverage improved to ~28.9% (9MCY24:38.9%).
SPL’s strong association with the Saif Group, combined with the consistent performance of its plant in meeting operational benchmarks, are key factors underpinning the assigned ratings. The government’s explicit guarantees on outstanding receivables provide substantial assurance, supporting financial stability. Moving forward, the ratings remain sensitive to the successful execution of the turnaround and the timely settlement of future receivables. However, the management, supported by strong sponsors, remains committed to maintaining a robust financial position, as evidenced by the successful deleveraging of the balance sheet.

About the Entity
Established in 2004 as an IPP under Pakistan’s Power Policy 2002, SPL has been listed on the Pakistan Stock Exchange since December 2014. Its major shareholders include Saif Holdings Limited (~47%) and Orastar Limited (~17%), alongside financial institutions (~8%) and the general public (~28%). The seven-member Board is chaired by Javed Saifullah Khan, with Jehangir Saifullah Khan serving as Acting CEO.