After achieving highest-ever AA (Double A) rating, Pakistan National Shipping Corporation (PNSC) has announced that it will diversify its business with the establishment of dragging and oil storage facilities in the country. PNSC has also completed all the necessary work to start a ferry service from KPT to Port Qasim and Gwadar and from Karachi to Chahbhar (Iran), Dubai, Muscat and other Middle Eastern countries.
Federal Minister for Ports and Shipping Senator Mir Hasil Khan Bizenjo, addressing a press conference on Wednesday, said all the necessary work has been completed to start the ferry service from KPT to Port Qasim and Gwadar. This service will be initiated in next couple of months. The ferry service will also be started from Karachi to Chahbhar (Iran) and Muscat and would be extended to Saudi Arabia and other Middle Eastern countries.
He said Pakistan Credit Rating Agency (PACRA) has granted an Entity Ratings of Long Term ''AA'' to Pakistan National Shipping Corporation (PNSC) in February, 2017. This rating has been raised from PNSC''s previous entity ratings of Long Term ''AA-''in 2016. The short-term ratings given to PNSC this year was ''A1+'', while its 2016 short term ratings was also A1+. PNSC''s Outlook has also remained constant at ''Stable''. The action advised for PNSC in 2017 is ''upgrade'', while last year the advised action was to ''maintain''.
As per PACRA''s report, the ratings reflect PNSC''s strong ownership - majority owned by Government of Pakistan and its strategic significance as the country''s flag carrier. On a stand-alone basis, PNSC''s business profile has gained significant strength in recent years and exhibited by continuous improvement in business margins on account of efficient fleet utilisation, better pricing strategy and cost management measures taken by the management.
Mir Hasil Khan Bizenjo said it is noteworthy that the PNSC is cruising ahead with distinction having achieved the ''AA'' ratings at the start of 2017. PNSC being a Public Sector company has displayed resilience by adopting robust measures and stringent controls and as a consequence PNSC''s business profile has gained significant strength in recent years."
Chairman PNSC Arif Ilahi said the PACRA Entity Ratings of Long-Term ''AA'' upgrading PNSC to having a stable outlook is significant and a milestone in the history of the national carrier. I am delighted to report that a concerted team effort, effective management practices and decisions based on best global practices in a most challenging environment have enabled us to achieve this result; congratulations to the entire staff of PNSC."
The ratings are dependent on the Corporation''s ability to generate envisaged cash-flows post-expansion. Meanwhile, proactive management of financial profile, while improving coverage''s remains important. Credit rating reflects forward-looking opinion on credit worthiness of underlying entity or instrument; more specifically it covers relative ability to honour financial obligations. The primary factor being captured on the rating scale is relative likelihood of default.
Arif Ilahi said that PNSC has decided to establish oil storage facilities in the country. He said PNSC intends to establish dragging company. It would be fully owned subsidy of PNSC and will provide dragging services to all ports of the country. About the financial position, he said that the profit after tax of PNSC has increased to Rs 2.324 billion translating into earning per share of Rs 17.59. PNSC has announced 20 percent cash dividend for its shareholders. Executive Director (Admn) PNSC Brigadier Rashid Siddiqi (Retd) and Director Captain Anwar Shah were also present on the occasion.