Singapore, 11 April 2024: Puma Energy Holdings Pte. Ltd has received a Long-Term Issuer Default Rating (IDR) rating upgrade to ‘BB’ with a rating outlook of Stable from a previous rating of from ‘BB-’ with positive outlook.
The upgrade from Fitch follows a corporate family rating upgrade from Moody’s Investors Service in November 2023 to Ba3 from B1.
Puma Energy Chief Financial Officer Carlos Pons said, “We are pleased to see continued rating upgrades over the past several months. This reflects the growing confidence in Puma Energy’s financial strength and recognizes our efforts to reduce debt and improve our debt maturity profile. They also represent our strong operational performance, cash flow generation and liquidity, which we delivered through a sustained focus on our core downstream business.”
Fitch cited that the ratings upgrades capture improved financial flexibility through USD1 billion debt reduction over the last two years, the group’s geographical and business diversification, as well as good underlying demand drivers.
The company’s capital structure improved significantly in financial year 2023 with gross debt decreasing from USD 1,561 million in the previous year to USD 1,032 million as of December 2023. This was mainly achieved through a two-phased liability management exercise against its 2024 Notes and our EUR Private Placement in August and December.
In addition, on 1 October 2023, USD 358 million of the company’s existing shareholder loan was successfully converted into equity, significantly bolstering its equity base to USD 452m as of the end of December 2023.
At the end of 2023, Puma Energy closed the year with its lowest debt levels in ten years – net Debt to EBITDA[1]of 1.3x.
About Puma Energy
Puma Energy is a leading global energy business, safely providing energy across six continents. Our downstream business segments include fuels, aviation, lubricants and bitumen. Our purpose is energising communities to help drive growth and prosperity by sustainably serving our customers’ needs in high potential countries around the world.
For further information visit: www.pumaenergy.com
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[1] Standard definition of net debt: gross debt minus cash and cash equivalents