Pakistan Refinery Limited Business Update and Credit Assessment

Pakistan Refinery Limited has been in operation since 1970, with its main objective being to meet the country's growing demand for petroleum products. It has a production capacity of 1.23 million tons per annum.

The refinery is situated in Karachi, Pakistan's largest city and economic hub, which is a strategic location for the transportation of goods.

Pakistan Refinery Limited has a wide range of products, including gasoline, diesel, and liquefied petroleum gas.

For more insights, see: National Refinery Limited

Pakistan Refinery Limited has shown a significant increase in its share price over the past year, with a 53.25% change.

The company's stock price has fluctuated over the past 52 weeks, with a high of PK₨45.86 and a low of PK₨22.03.

Here's a breakdown of the company's share price performance over the past year:

The company's beta, which measures its volatility relative to the market, is 0.78, indicating a relatively stable stock.

The risk and credit profile of Pakistan Refinery Limited is a mixed bag. Dividend of 5.36% is not well covered by earnings or free cash flows.

Debt is not well covered by operating cash flow, which could pose a challenge for the company in the future. The ratings are reflective of the resilient business profile of Pakistan Refinery Limited, emanating from its sustainable operational history and its strategic importance in the domestic context.

However, the ratings are dependent upon the company's ability to effectively shield its business profile from external vulnerabilities. Revived performance indicators and a prudent financial matrix are imperative to uphold the ratings.

The refinery policy will provide support to the REUP and contribute towards the sustainability of operations, which is a positive development for the company.

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