Press Release
VIS Assigns Initial Entity Ratings to Cnergyico PK Limited
Karachi, November 11, 2025: VIS Credit Rating Company Limited (VIS) assigns initial entity ratings to Cnergyico PK Limited at ‘A-/A2’ (Single A minus/A two). Medium to long term rating of ‘A-’ indicates Good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A2' indicates Good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings is ‘Stable’.
Incorporated in 1995 as a public limited company, Cnergyico PK Limited (‘Cnergy’ or ‘the Company’) is an integrated energy company, with operations spanning the downstream oil sector. The Company operates two core business segments: (1) an oil refining business, comprising two refineries with a combined rated capacity of 156,000 barrels per day (bpd), and (2) a petroleum marketing business, formally launched in 2007, which is managed through a network of 470 retail outlets across the country. The Company’s head office is located at Harbour Front, Clifton, Karachi, while refining units are situated in District Lasbella, Baluchistan.
The assigned ratings reflect Cnergyico PK Limited’s position as Pakistan’s largest refinery, representing about 36% of national refining capacity, supported by a diversified and expanding petroleum marketing network. The Company’s integrated operations, spanning refining, import logistics through its Single Point Mooring (SPM) facility, extensive storage infrastructure, and over 470 retail outlets, underscore its strategic role in domestic fuel supply. Capitalization improved following a PKR 25.7 billion sponsor support and debt reduction, though liquidity remains constrained by elevated payables and sales tax receivables. Nonetheless, DSCR remained adequate at 1.34x (FY24: 1.73x), reflecting adequate near-term debt servicing capacity.
At the industry level, business risk remains medium to high, driven by exposure to crude oil price volatility, import dependence, and weak furnace oil demand. The Refinery Upgradation Policy is expected to enhance operational efficiency and align output with Euro V/VI standards, though sector liquidity challenges persist. Going forward, the ratings will remain sensitive to Cnergyico’s ability to sustain operations, maintain profitability, and successfully fund its planned USD 1 billion upgrade project. Moreover, the Company’s post-demerger credit profile will be evaluated upon completion of the transaction, reflecting any structural or financial changes arising from the reorganization.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf