PACRA maintains Entity Ratings of Spud Energy Pty Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- January 16, 2023 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)


Spud Energy Pty Limited (Pakistan Branch) is engaged in the upstream Oil and Gas business in Pakistan. The Company is a wholly-owned subsidiary of Jura Energy Corporation (JEC), a public company listed on TSX Venture Exchange. The Board of JEC, comprising of four members, duly exercise intensive oversight over the company. The ratings also take into account the strong governance structure and management control of the parent company. Spud Energy benefits from expertise of the parent company's board.

The financial position of Spud Energy Pty Limited (Pakistan Branch) remains strong owing to its robust profitability in 9MCY22 and comfortable debt protection metrics. The strength of the business reflects in the US dollar-based pricing and its collection in US dollars directly into the foreign currency bank accounts. In addition to that the Company is least exposed to exchange loss risk where all transactions are US dollar-based.

Hence, the Company earned an exchange gain of PKR~ 737mln which strengthened bottom line of the Company. Spud Energy Pty Limited's (Pakistan Branch) management aims to grow its exploration and production portfolio while simultaneously...

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