Press Release

VIS Reaffirms Entity Ratings of Biotech Energy (Private) Limited

Karachi, April 16, 2025: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed the entity ratings of Biotech Energy (Private) Limited (“Biotech” or “the Company”) at ‘A/A1’ (Single A/A One). 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 'A1' suggests strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings remains ‘Stable’. Previous ratings action was announced on September 21, 2023.

Biotech, a part of the Safo Venture Holdings is a key player in Pakistan’s biodiesel sector, specializing in second-generation biofuels derived from non-food feedstocks. As the country’s sole biodiesel exporter, the Company meets the stringent EN14214 standard and supplies to the European markets. Expanding its renewable energy footprint, The Group is pioneering Pakistan’s first sustainable aviation fuel (SAF) initiative. With a strong governance framework and structured management, the Company has successfully navigated generational transitions and is now pursuing strategic growth through biodiesel production.

The assigned ratings incorporate the accelerated global demand for renewable fuels, where Biotech remains well-positioned with its export-oriented model and adherence to international sustainability requirements, including EU standards. Its commitment to ESG principles, net-zero emissions targets, and regulatory compliance strengthens its market standing. Moreover, sponsors support provides further comfort to the assigned ratings.

The ratings incorporate the financial risk profile, reflecting operational efficiencies achieved through process upgradation and investment in technology, contributing to higher capacity utilization as well. Revenue growth was supported by increased production and addition of a new customer. However, increased short-term borrowings, to fund the additional working capital, led to a marginal increase in gearing. Liquidity constraints emerged due to investment in efficiency-related initiatives and delays in shipment-related payments, affecting short-term debt coverage and the current ratio. Debt servicing capacity, however, continues to remain at a comfortable level.

Going forward, the assigned ratings will remain sensitive to Biotech’s ability to maintain profitability margins, and improve the liquidity position. The Company’s commitment to innovation in renewable energy, expansion into sustainable aviation fuel, and continued optimization of production efficiencies will also be important for the assigned ratings.

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

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 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .