Press Release

VIS Reaffirms Entity Ratings of Engro Powergen Qadirpur Limited

Karachi, November 06, 2025: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed entity ratings of Engro Powergen Qadirpur Limited ('EPQL’ or 'the Company’) at 'AA-/A1' (‘Double A minus/A One’). Medium to long term rating of 'AA-' indicates high credit quality; Protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Short-term rating of 'A1' signifies strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings is ‘Stable’. Previous Rating action was announced on September 04, 2024.

EPQL. a subsidiary of Engro Energy Limited (EEL), operates a 217 MW combined-cycle power plant under a power purchase agreement (PPA) with Central Power Purchasing Agency (guarantee) Limited (CPPA-G) valid till 2035.

The ratings reflect EPQL’s measures to address the declining output from the Qadirpur gas field. To ensure fuel supply continuity, the Company executed a Gas Sale and Purchase Agreement (GSPA) with Petroleum Exploration Limited (PEL) for the supply of 8–13 mmscfd of low-BTU gas from the Badar Gas Field.

Effective November 1, 2024, EPQL has signed Negotiated Settlement Agreement with CPPA-G and Private Power and Infrastructure Board (PPIB), transitioning to a hybrid take-and-pay structure with revised return parameters. While the new structure introduces revenue variability compared to the previous take-or-pay framework, the continued capacity payments, low leverage, and fully repaid project debt provides comfort. Assigned rating also incorporates sponsors, Engro Group’s, strong financial position and governance framework. The Group’s extensive management expertise and strategic support continue to reinforce EPQL’s operational resilience, particularly during the ongoing fuel transition and evolving regulatory environment.


For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.

Applicable Rating Criteria: Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright November 06, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.