Press Release
VIS Assigns Initial Entity Ratings to Pakistan Oxygen Limited
Karachi, August 19, 2026: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of 'AA-/A1' (Double A Minus/A One) to Pakistan Oxygen Limited (‘POL’ or the ‘Company’). Medium to long term rating of 'AA-' 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' indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. The outlook on the assigned ratings is ‘Stable’.
POL was founded in 1935 and formally incorporated in 1949 and listed in 1958, the Company was initially part of the BOC Group and later affiliated with Linde plc. Following a majority acquisition in 2018 by a local consortium, including Adira Capital, Soorty Enterprises, and the Hilton Pharma family, the Company was rebranded as Pakistan Oxygen Limited, marking a transition to predominantly local ownership. POL manufactures and supplies a broad portfolio of industrial gases, including oxygen, nitrogen, argon, carbon dioxide, hydrogen, and specialty gases, catering to sectors such as healthcare, steel, chemicals, food & beverages, and engineering.
The assigned ratings reflect POL's sustained strengthening of its business and financial risk profile, underpinned by its leading position in Pakistan's industrial gases industry. Its diversified customer base and nationwide cylinder distribution network provide resilience and reinforce its competitive advantage. Continued investments in capacity expansion, improved asset utilization, disciplined pricing, and operational efficiencies have supported sustained revenue growth, stronger earnings quality, and margin expansion despite a challenging operating environment. Demand from healthcare and oil & gas has partly offset weakness in traditional industrial sectors, while POL's longstanding technical association with Linde plc continues to support operational excellence, product quality, innovation, and internationally recognized safety standards.
The ratings also factor in the strengthened governance framework following the Board's reconstitution in January 2026, comprising a balanced mix of independent and non-executive directors with diverse expertise across industrial operations, finance, corporate advisory, risk management, and governance. While the Company is currently led by an interim Chief Executive Officer, the timely appointment of a permanent CEO with relevant industry experience will remain important to ensure continuity of strategy execution.
POL's financial risk profile has strengthened through continued deleveraging, robust operating cash flow generation, and strong liquidity, supporting comfortable debt servicing and coverage metrics. Going forward, the ratings remain dependent on the Company's ability to maintain its market leadership, sustain profitability and prudent financial policies, and execute its growth strategy without materially weakening its financial profile.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk
Applicable Rating Criteria:
Corporate Rating
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf