November 12, 2025 (MLN): VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings to Cnergyico PK Limited (PSX: CNERGY) at ‘A-/A2’ (Single A minus/A two) with a Stable Outlook.

The medium- to long-term rating of ‘A-’ indicates good credit quality with adequate protection factors, while the short-term rating of ‘A2’ reflects good likelihood of timely repayment of short-term obligations.

VIS also noted Cnergyico’s ongoing $1 billion Refinery Upgradation Project, which is expected to strengthen the company’s sustainability, profitability, and fuel quality standards, positioning it more competitively in Pakistan’s evolving energy market, according to the company’s filing on PSX today.

VIS stated that the assigned ratings reflect Cnergyico’s leading market position, representing about 36% of national refining capacity, supported by diversification and a strong marketing network.

The company’s infrastructure includes a Single Point Mooring (SPM) facility, extensive storage capacity, and broad retail coverage. Capitalization improved following a RS25.7 billion sponsor support and debt reduction, although liquidity remains tight due to elevated payables and receivables.

Debt service coverage ratio stood at 1.34x for FY25, compared to 1.73x in FY24, indicating adequate near-term capacity.

At the industry level, VIS observed that business risks remain medium to high, driven by crude oil price volatility, import dependence, and weak furnace oil demand.

Nonetheless, Cnergyico’s integrated operations and strategic investments are expected to enhance operational resilience and long-term growth potential. VIS added that the company’s performance post-reorganization will be key to maintaining its credit profile.

Founded in 1995, Cnergyico PK Limited is Pakistan’s largest integrated energy company with operations spanning the downstream oil sector.

It manages two refineries with a combined rated capacity of 156,000 barrels per day, alongside a nationwide petroleum marketing network comprising 470 retail outlets. 

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