Guyana Shore Base Incorporated (GYSBI) has received favourable credit ratings from the Caribbean Information and Credit Rating Services Limited (CariCRIS). The institution recently noted that the ratings reflect GYSBI’s strong market position, supported by Guyana’s thriving oil and gas sector. It further noted that the ratings assigned highlight GYSBI’s creditworthiness on both regional and national scales.
Established in 2017, GYSBI is a private company operating as a joint venture among Muneshwers Limited, TOTALTEC Oilfield Services, Pacific Rim Constructors, and LED Offshore Limited. The company offers a range of support services to the oil and gas industry, including waste management, warehousing, construction, supply chain management, and logistics services.
CariCRIS said it awarded GYSBI initial ratings of CariAA- on the regional scale and gyAAA on the Guyana national scale for its proposed debt facilities of up to US $33.7 million. These ratings indicate that GYSBI’s debt obligations are deemed highly creditworthy compared to other obligations in the Caribbean and Guyana, respectively.
The strong ratings are supported by several factors according to the CariCRIS. Firstly, Guyana’s flourishing oil and gas sector, with 27 economically viable oil discoveries and estimated total recoverable oil resources of 11 billion barrels, positions the country as a major global oil producer. It even noted that GYSBI’s role as the largest shore base facility in Guyana, coupled with its 11-year commercial contract with Exxon Mobil affiliate EEPGL, ensures revenue stability and long-term viability.
GYSBI’s impressive track record of operational efficiency and comprehensive safety policies also contribute to its favorable ratings. It said the company has consistently maintained stable operating profits, indicating its ability to service its debts comfortably. Furthermore, GYSBI’s strong management profile enhances its creditworthiness, as demonstrated by its successful operations and good market position.
Despite these strengths, CariCRIS outlined the potential risks GYSBI faces, including significant client concentration risk, as a large portion of its revenue is derived from a single client, Esso Exploration and Production Guyana Limited (EEPGL). CariCRIs suggested that to further improve its ratings, GYSBI could diversify its client base and reduce reliance on a single source of revenue.
Additionally, the ratings could benefit from improvements in GYSBI’s performance metrics and the overall sovereign risk profile of the Government of Guyana.
