By SKM
November 12, 2025
ISLAMABAD: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A-/A2’ (Single A minus/A two) to Cnergyico PK Limited, with a Stable Outlook, reflecting the company’s solid market position and improving capitalization, despite continued liquidity constraints.
A long-term rating of ‘A-’ denotes good credit quality with adequate protection factors, while the short-term rating of ‘A2’ indicates a good likelihood of timely repayment of short-term obligations supported by sound liquidity metrics, VIS said in a statement from Karachi.
Incorporated in 1995, Cnergyico PK Limited is Pakistan’s largest oil refinery, representing about 36% of the country’s total refining capacity, with operations spanning refining and petroleum marketing. The company runs two refineries with a combined capacity of 156,000 barrels per day (bpd) and manages an expanding retail network of over 470 outlets across Pakistan.
VIS noted that Cnergyico’s integrated operations—covering refining, import logistics through its Single Point Mooring (SPM) system, and extensive storage infrastructure—underscore its strategic importance in the domestic energy supply chain.
The company’s capitalization improved following a PKR 25.7 billion sponsor support and debt reduction, though liquidity remains under pressure due to elevated payables and pending sales tax receivables. The Debt Service Coverage Ratio (DSCR) stood at 1.34x in FY25 (FY24: 1.73x), indicating adequate near-term debt servicing capacity.
At the industry level, VIS highlighted medium-to-high business risk stemming from crude oil price volatility, import reliance, and soft furnace oil demand. The upcoming Refinery Upgradation Policy is expected to enhance operational efficiency and product quality to Euro V/VI standards, but sector-wide liquidity challenges remain.
VIS added that the company’s future ratings will hinge on its ability to sustain operations, maintain profitability, and successfully finance its planned USD 1 billion refinery upgrade project. The firm’s post-demerger credit profile will also be reassessed upon completion of the restructuring process. — Ends —
