PACRA maintains Entity Ratings of Orient Petroleum Inc. (Pakistan Branch)

Orient Petroleum Inc. (Pakistan Branch) ('Orient Petroleum') drives strength from a considerably strong backing from its sponsors holding interests across oil and gas exploration, through Orient Petroleum Pty Limited, Zaver Petroleum Corporation, & in LPG distribution network, through OPI Gas (Pvt.) Limited, and in the hospitality segment, through Hashwani Hotels Limited which owns and operates a chain of Marriott Hotels across Pakistan. Orient Petroleum, engaged in the exploration, development, and production of oil and natural gas reserves, currently holds a working interest in six production leases and seven exploration licenses.
During 6MCY24, Orient Petroleum has achieved growth of ~11.7% in the topline, mainly attributable to stable oil prices, and production. On the operational front, Orient Petroleum's reports identified crude oil, gas & LPG sales of ~121,241bbl, ~1,388mmscf, and ~4,530MT, respectively during 6MCY24. Overall, the business margins posted substantial growth. Orient Petroleum drives strength from risk-adjusted recoverable reserves both from its production, development, and exploration stage assets. On the financial risk front, Orient Petroleum is adequately leveraged with stable coverages. The working capital remains strong. As Orient Petroleum plans to expand its wells in development blocks, going forward, this may enhance Orient Petroleum's working capital requirement. A substantially strong financial discipline along with a better governance framework remains pivotal to the ratings.
The ratings are dependent on the sustained relative positioning of Orient Petroleum in the oil and gas exploration segment. Volatility in the topline and profitability remains a key concern. The ratings would take positive benefit from the increase in volumes handled by Orient Petroleum. Strict financial discipline along with the Sponsor's support are imperative to ratings while improving the coverage ratios.

About the Entity
Orient Petroleum Inc. (Pakistan Branch) ('Orient Petroleum') is incorporated in Cayman Islands and is operating in Pakistan through its branch office. Orient Petroleum is engaged in the exploration, development, and production of oil and natural gas reserves.
Ownership of Orient Petroleum lies with with Zaver Petroleum International Inc. (~55%) and First Global Investment Holdings Ltd. (~45%). The Board comprises four members with Mr. Hasan Ali Hashwani chairing the Board. Mr. Kamran Ahmed heads as the CEO. He is assisted by a team of seasoned professionals.