⚡ Flash Summary
Ghani Chemical Industries Limited (GCIL) has announced a joint venture with Mari Energies Limited to establish a project company focused on capturing and processing exhaust gases from the Sachal Gas Processing Complex. This initiative, the first of its kind in Pakistan, involves an investment of PKR 14 billion and is projected to produce 80,000 tons of liquefied natural gas (LNG) and 55,000 tons of carbon dioxide annually. The project anticipates generating PKR 17 billion in annual revenue, with significant profitability, and GCIL will hold 49% ownership in the project company.
📌 Key Takeaways
- 🤝 Joint Venture: GCIL partners with Mari Energies Limited for a new project.
- 🏭 Project Focus: Capturing and processing cold-vent/exhaust gases.
- 🇵🇰 First of its kind: The project is the first of its kind in Pakistan.
- 💰 Investment: PKR 14 billion investment in the project.
- 💨 Production Capacity: 80,000 tons of LNG and 55,000 tons of CO2 annually.
- 💸 Revenue Projection: Expected PKR 17 billion in annual revenue.
- ✅ Profitability: Project anticipates substantial profitability.
- 🤝 Ownership: GCIL holds 49% shares in the project company.
- 👤 CEO Appointment: Mr. Hafiz Farooq Ahmad to be the first CEO of the project company.
- 🏦 Financing: A significant portion of the project cost will be financed through supplier’s credit.
- 📅 Announcement Date: Board approval on November 19, 2025.
🎯 Investment Thesis
BUY. The joint venture with Mari Energies Limited and the establishment of the new project company present a compelling growth opportunity for GCIL. The potential revenue of PKR 17 billion and the expected profitability could significantly enhance the company’s earnings. A price target of PKR 45, with a time horizon of 18 months, is justified based on the project’s potential impact on GCIL’s financial performance.
Disclaimer: AI-generated analysis. Not financial advice.