PEFINDO has affirmed its idAA rating for PT Elnusa Tbk

(April 17, 2024)--Outlook for the corporate rating is stable. PEFINDO has also affirmed its idAA(sy) rating for the Company’s Shelf Registered Sukuk Ijarah I/2020. The rating reflects Elnusa’s strong support and synergy with Pertamina Group, strong presence and diversification in the oil and gas services business, and very strong financial profile. The rating is constrained by the risk of global crude oil price fluctuation and exposure to energy transition risk.

The rating may be raised if Elnusa significantly strengthens its business position, validated by significant growth in revenue and earnings through inorganic business expansion or by securing substantial job orders on a sustained basis, while maintaining its conservative capital structure and strong cash flow protection measures. However, the rating may be lowered if Elnusa aggressively finances its expansion with debt substantially larger than projected, without adequate compensation through stronger business performance, or if there is a significant reduction in service fees, resulting in lower revenue, cash flow, or profitability. The rating could also be under pressure if there are indications of diminishing support from the Group, especially during financial difficulties.

Established in January 1969, Elnusa is engaged in integrated upstream oil and gas services, upstream oil and gas support services, and logistics and distribution services related to the downstream oil and gas sector. As of December 31, 2023, PHE was Elnusa’s major shareholder with a 51.1% stake. The remaining shares were owned by others, including the public with ownership stakes below 5% each, with 48.9% stake. (ends)