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

Orient Petroleum Inc. (Pakistan Branch) ('Orient Petroleum') benefits significantly from its robust sponsor base, which maintains diversified interests across the energy value chain, including oil and gas exploration (Orient Petroleum Pty Limited, Zaver Petroleum), LPG distribution (OPI Gas), and hospitality (Hashwani Hotels). Orient Petroleum is actively involved in the exploration, development, and production of crude oil and natural gas, holding working interests in six production leases and seven exploration licenses. Its revenue mix is primarily derived from condensate (~34%), natural gas (~27%), LPG (~20%), and crude oil (~18%). Orient Petroleum has demonstrated strong revenue growth, posting an upward trajectory with YoY growth of ~11% during CY24 and ~15% during 6MCY25, supported by stable oil prices and consistent production levels. Business margins have notably strengthened with net profit margin reported at ~49.8% in 6MCY25 (6MCY24: ~18.5%), reflecting improved operational efficiency, stable market dynamics, and support from risk-adjusted recoverable reserves across its asset portfolio. The addition of production from the Waziristan block has further strengthened the business profile of Orient Petroleum. Orient Petroleum maintains a sound financial risk profile characterised by moderate leverage of ~36.2% as of 6MCY25 (6MCY24: ~57%), stable coverage metrics, and a strong working capital position. Future expansion plans involving development block wells necessitate a clearly defined financial metric to ensure manageable future working capital requirements. PACRA has upgraded Orient Petroleum's entity ratings backed by continued growth in its financial performance and position. Transparency, along with an effective and streamlined governance framework, is of utmost importance for Orient Petroleum as it works with regulated and sound partners (OGDCL, Mari Energies, Fatima Petroleum, POL, and AOC, etc.) in the upstream energy segment. This bodes well for Orient Petroleum, going forward. As Orient Petroleum plans to expand its offshore and onshore sites, its financial viability is expected to further improve. While sustaining financial discipline and enhancing Orient Petroleum's governance framework remain pivotal to the assigned ratings
The ratings are dependent on the sustained relative positioning of Orient Petroleum in the oil and gas exploration segment. Stability in the topline and profitability remains important. The ratings would take positive benefit from the increase in volumes handled by Orient Petroleum. Strict financial discipline, along with the Sponsor's support, is imperative to ratings, while improving the coverage ratios is paramount.

About the Entity
Orient Petroleum Inc. (Pakistan Branch) ('Orient Petroleum') operates in Pakistan as a branch office of a foreign entity and is engaged in the exploration, development, and production of oil and natural gas reserves.
Orient Petroleum is ultimately 100% owned by Mr. Hasan Ali Hashwani. The Board comprises four members, with Mr. Hasan Ali Hashwani chairing the Board and Mr. Kamran Ahmed heading Orient Petroleum as the CEO. They are assisted by a team of seasoned professionals.