PIBTL’s utilization of handling coal reaches 98%
The PIBTL’s utilization of handling coal has reached 98 percent during November 2020.
Insight Securities arranged an analyst call with the management of PIBTL where CFO Arsalan Iftikhar discussed the company’s financial performance and future outlook. Key excerpts from the session.
He said that during 1QFY21, PIBTL’s utilization stood at 76.7%, while the company has handled 980-kilo tons of coal in Nov 2020 that accounts for 98% utilization.
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Currently, he further said that the company is in negotiations with all lenders for the restructuring of its loan, including IFC & OFID, and expects negotiation to complete within 3-4months.
The company commented that future dividend-paying capacity would be contingent upon successful negotiations with banks and loan sponsors.
The company plans to add a capacity expansion of 4-6 million metric tons per annum of coal, which will take total coal handling capacity to 16-18mntpa, with conveyer belt related CAPEX of $50-60 million.
To note, this expansion doesn’t require any major civil work. However, management did not disclose any financing details of the projects. Expansion is likely to take 12-15 months for completion once work kick in.
Management is also in talks with PQA (Port Qasim Authority) about the extension of storage capacity. However, they believe that existing storage capacity can handle expanded capacity if customers lift their cargo on time.
That energy and Siddique sons are also in contact with PIBTL on alternative coal arrangement if Thar coal mine is not ready to serve them until their CODs.
Work on a railway track and LPG project are at the prerequisite phase and require certain approvals from relevant authorities. The company charges $5.49/ton on vessel handling and $1/ton on ancillary charges, making the total tariff $6.5. The company has a 15MW diesel-based indigenous power capacity while normalizing the required power is 6-7MW.
READ PIBTL crosses 1 million tons coal handling benchmark in Oct.
