PACRA Maintains the Entity Ratings of Pakistan International Bulk Terminal - Rating Watch Removed

Pakistan International Bulk Terminal (PIBT) is engaged in terminal management, primarily handling the import of coal and export of clinker/cement, with an annual capacity of 12 million MT and 4 million MT, respectively. The ratings draw comfort from the sponsors’ established association with the Marine Group of Companies, the Company’s improving leverage profile, and its strategic steps toward revenue diversification. USD-denominated revenues provide a natural hedge against currency exposure, supporting cash flow stability. The Company’s cost structure includes a royalty payable to the Port Qasim Authority (PQA), equivalent to approximately 35% of gross revenue, which remains variable in nature and is directly linked to cargo volumes handled. During 9MFY26, PIBT handled 5.51 million tons of coal, up from 3.53 million tons in 9MFY25, reflecting a recovery of 56%. For the 10-month period ended April 2026, volumes reached 6.91 million tons, already surpassing the full-year FY25 volume of 4.79 million tons. This recovery was driven by improved demand, lower international coal prices, and the resumption of normal operations following a fire incident in November 2024. Nonetheless, the ratings underline PIBT’s inherent sensitivity to volume fluctuations given its fixed debt obligations. To meet its financial obligations, the Company needs to maintain throughput at approximately 60–65% of available capacity. The volume recovery translated into a meaningful improvement in financial performance. Revenue rose to PKR 11,695mln in 9MFY26, increase of 57% over PKR 7,442mln in 9MFY25, at an average tariff of approximately $7.5/MT. The bottom line turned around sharply, with the Company posting a net profit of PKR 2,127mln in 9MFY26, against a net loss of PKR 4.9mln in 9MFY25 and a net loss of PKR 258mln in FY25. Gross margin expanded to 33.0% from 20.7% in FY25. On the balance sheet, leverage continued to improve, with total borrowings declining to PKR 5,184mln as of March 31, 2026 (FY25: PKR 6,895 million; FY24: PKR 10,349 million), and debt-to-equity improving to 22.9% (FY25: 30.8%; FY24: 39.7%). Looking ahead, the Company’s debt repayment trajectory remains current. Foreign debt is expected to be fully retired by June 2026, with local debt scheduled to follow by June 2029. To further enhance sustainability and broaden its revenue base, PIBT signed a definitive agreement with Reko Diq Mining Company (RDMC) on December 15, 2025, to handle and export copper-gold concentrates. RDMC will invest $150mln to develop dedicated storage and handling facilities at PIBT’s terminal, forming a key component of the project’s $7.7bln total investment. Commercial exports are expected to commence in 2028. This strategic diversification is expected to provide meaningful additional support and stability to the ratings.
The ratings are dependent upon the Company's profitability and cash flows, which are closely tied to maintaining high cargo volumes, managing operational efficiency, and fulfilling its financial commitments. Strategic diversification into alternative business ventures, including the Reko Diq agreement, is expected to provide additional support and stability to the ratings. The Rating Watch has been removed following the recovery in cargo volumes, return to profitability, improved leverage, and continued debt repayment. The outlook remains Stable.

About the Entity
PIBT was incorporated in November 2010 and commenced its commercial operations on July 3, 2017. Ownership of the company vests with Premier Mercantile Services (Pvt.) Limited (PMS) (~43%) , which is the flagship company of the "Marine Group of Companies" acting as an investment arm. Capt. Haleem Ahmed Siddiqui is the Chairman of the Board. He, along with his family, collectively owns PMS. Capt. Siddiqui has over 50 years of experience in marine-related services and was also the founding Chairman of the Pakistan International Container Terminal (PICT). Mr. Sharique Azim Siddiqui is the CEO of PIBT, assisted by a team of qualified professionals.