Muscat – Energy Development Oman (EDO) has been upgraded by Fitch Ratings to BBB- with a stable outlook, following the recent upgrade of the Sultanate of Oman’s sovereign credit rating to BBB-. Fitch affirmed EDO’s Standalone Credit Profile at bbb+, citing the company’s large-scale oil and gas operations, resilient cash flow generation as a result of contracted gas sales in addition to its flexible royalty framework, prudent dividend policy, and low leverage.

With the Fitch upgrade, EDO has now secured investment grade ratings from both Fitch Ratings and S&P Global Ratings, following S&P’s upgrade to BBB- in September 2024. This milestone reflects EDO’s positive business trajectory and the strength of its financial profile. The investment grade status will broaden the company’s investor base and supports access to more competitive financing, reinforcing its capacity to fund operations and future growth while contributing to Oman’s energy-sector development objectives.

Commenting on the rating, Sultan al Mamari, EDO’s Chief Financial Officer said, “We are delighted to have achieved Investment Grade status from two leading international rating agencies.  This will enhance our access to competitive capital markets financing and our attractiveness as an industrial partner.  We view the upgrade from Fitch Ratings as a strong endorsement of Oman’s and EDO’s sustained financial and business discipline, and future prospects.”

Since its establishment, EDO has become a key driver in shaping a more resilient and commercially sustainable energy sector in Oman. Through consistent delivery, disciplined investment, and closer integration across the energy value chain, the company has contributed to safeguarding production, strengthening energy security, and ensuring the sector continues to generate long-term value for the Sultanate.

About EDO

Energy Development Oman (EDO) was established by Royal Decree in December 2020, becoming Oman’s national energy company.  Tasked with leading the nation’s energy sector, its core objective is to ensure efficient, secure, and cost-effective energy for national prosperity in line with Vision 2040’s economic growth goals.

EDO’s mandate is to optimise the commercial potential of Block 6 where it holds a 60% stake in the oil concession and 100% ownership of the gas concession.  A key enabler in Oman’s energy transition journey, EDO aims to balance the reliance on traditional hydrocarbons with renewable energy, including solar and wind.  

EDO’s current strategy encompasses the oversight of government owned energy assets in Block 6, optimising its operating models and the consolidation of its procurement and supply chain processes. EDO is focused on the management of the assets to improve cash-flow as well as identifying and structuring new income-generating opportunities.  With these initiatives, EDO is bolstering Oman’s energy security and providing a steady revenue stream for the government.

Fostering a supportive ecosystem for the energy industry, EDO works closely with the public and private sector to establish an enabling regulatory and business framework for foreign investment in green energy initiatives. This collective effort is instrumental in achieving the nation’s 2050 net-zero goals and building a low-carbon future.

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