Press Release

JCR-VIS Reaffirms Entity Ratings of Jamshoro Joint Venture Limited

Karachi, January 19, 2016: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Jamshoro Joint Venture Limited (JJVL)) at ‘A+/A-1’ (Single A Plus/A-One). Outlook on the assigned ratings is ‘Positive’. The previous rating action was announced on March 20, 2015.

The ratings take into account JJVL’s prominent position in LPG business and improved operating performance on account of continued high propane recovery, better availability of gas leading to higher capacity utilization. Under the new arrangement, processing fee and the payables due to SSGCL for purchase of LPG and NGL are settled regularly.

While prices of LPG and NGL remained depressed during FY15, higher capacity utilization and sustained propane recovery translated into improved revenues. In the coming years, margins are expected to remain a function of gas processed while higher capacity utilization is expected to positively reflect on the operating performance.

The company maintains a healthy financial risk profile. Project financing arranged for JJVL-2 is expected to be completely paid off during the ongoing year while additional long term financing planned in the coming years is expected to be adequately supported by operating cashflows. Going forward, leverage indicators are likely to exhibit improvement as a result of positive momentum in earnings and no major CAPEX requirements.

For further information on this rating announcement, please contact the undersigned (Ext: 501) or Mr. Mohammed Khalid Ali (Ext: 508) at 021-35311861 - 70 or fax to 021-35311873.


Applicable Criteria: Oil & Gas Industry (Feb 2004) & Industrial Corporates (Oct 2003) &>IndustrialCorp.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 2016 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited