PACRA Maintains Entity Ratings of Halmore Power Generation Company Limited
Lahore, November 20, 2018 (PPI-OT): Halmore Power Generation Company Limited (Halmore Power) runs a 225MW power plant. The company operates in the regulated power sector. It enjoys sovereign guarantee against receivables from power purchaser – CPPA-G – given adherence to agreed performance benchmarks. The Company’s operations and maintenance operator, General Electric International (GE), is a key source of comfort in managing the plant’s operations.
The company’s financial risk profile is largely dependent on repayment behaviour of the power purchaser. In recent period, availability of primary fuel was relatively high as compare to prior periods, on account of better energy mix; hence operational performance remained healthy. Halmore Power funds its working capital requirements mainly through short-term borrowings. Halmore Power has total long term debt of PKR 4,716mln as at end-Sept18 payable till December 2020. The company avails forbearance period while meeting its financial obligations.
Upholding operational performance in line with agreed performance levels would remain a key rating driver. Accumulation of circular debt would pose threat to the company’s ability to continue with this practice. Any significant increase in overdue receivables, as a result of rise in circular debt, may impact the ratings.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
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