Fitch Affirms Energy Development Oman’s Ratings with Stable Outlook
Fitch Ratings has reaffirmed Energy Development Oman’s (EDO) long-term issuer default rating at ‘BB+’ with a stable outlook. The global rating agency also affirmed EDO’s senior unsecured rating at ‘BB+’.
Fitch highlighted EDO’s strong financial profile, citing its history of maintaining a prudent financial stance and successful reserve management. The company’s large-scale oil and gas operations, strong cash flow generation, flexible dividend policy, and low leverage were also noted.
However, Fitch pointed out constraints such as EDO’s single-country operations and a mature reserve base compared to peers. Despite these limitations, the agency expects EDO to maintain a strong financial profile through 2028.
EDO, the largest oil and gas producer in Oman, operates through its interest in Petroleum Development Oman (PDO). PDO’s long production history and expansive operations in the region provide stability to EDO’s ratings.
Regarding environmental efforts, Fitch noted EDO’s commitment to reducing greenhouse gas emissions and improving energy efficiency. The company aims to expand renewable power generation capacity in line with global peers.
In conclusion, Fitch’s reaffirmation of EDO’s ratings reflects confidence in the company’s financial strength and strategic operations in the energy sector.
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