Rating Release

Agusto & Co. hereby assigns a “Bbb-” long-term and “A3” short-term rating to Strides Energy and Maritime Limited (“Strides Energy”, “SEML” or “the Company”) with a stable outlook 

The ratings expire on 30 June 2026.

Agusto & Co. hereby assigns a “Bbb-” long-term and “A3” short-term rating to Strides Energy and Maritime Limited (“Strides Energy”, “SEML” or “the Company”). The assigned rating reflects the Company’s good profitability, supported by an expanding portfolio of contracts, the credit quality of its counterparties, as well as its dollar-denominated inflows, which provide a natural hedge against foreign exchange risk. However, the rating is constrained by SEML’s inadequate working capital position, high leverage and elevated revenue concentration risk, given that over 80% of its earnings are derived from contracts with Renaissance Africa Energy Company Limited (RAEC, formerly Shell Petroleum Development Company of Nigeria). The rating is further moderated by the Company’s concentrated ownership structure and a corporate governance framework that requires strengthening.

Strides Energy was incorporated in 1992 as a commodity export business and commenced oil and gas construction and support services in 2000. The Company’s operations cover engineering, procurement, construction, installation and commissioning (EPCIC) of oil and gas facilities; offshore and swamp pipeline construction; diving and subsea inspection, maintenance and repair; petroleum terminal tank farm construction and rehabilitation; and the supply and operation of offshore support vessels. SEML owns and operates a fleet of four marine vessels. Its principal client is RAEC which accounted for about 88% of its revenue in 2024.