PACRA Maintains the Entity Ratings of Polaris Danah Natural Resource Development (Pvt.) Limited

Polaris Danah Natural Resource Development (Pvt.) Limited (“PDNRD”) is a newly established seismic survey company operating in Pakistan, leveraging the technical expertise of Polaris Inc., a global provider of geophysical and seismic exploration services. Under the leadership of CEO Mr. Abdel Latif Hakkoumi, the Company has strategically entered the Pakistani market, targeting regions with high potential for oil and gas exploration, with business development initiatives guided by Mr. Bill Mooney, founder of Polaris Inc. During FY24, PDNRD was in the initial setup phase, during which no projects were awarded to the company and some administrative and operational expenses were incurred, which passes down to become a net loss of PKR 82.8 million for 2024. As operations progress, the Company has recently been awarded the Al Haj Project for the North Baska Block (753 L.Kms) using the Stryde Nodal System, with the Polaris First Active crew currently stationed at the block and an active workforce of approximately 350 employees. In addition, a pipeline project with a few big E&P companies is expected to mature within the next month, reflecting early success in building a project portfolio. Audited accounts for FY25 are not yet available; once provided, they will be reviewed to give a comprehensive view of the Company’s financial performance and operational progress.
The rating is contingent upon the successful execution of PDNRD’s current projects, including the Al Haj and other E&P companies' contracts, as well as any additional projects that may be secured in the future. It will also depend on the provision and review of the audited accounts for FY25. The Company’s operations face industry-specific challenges such as potential delays in receivable collections, cost and timeline overruns, and competition from established E&P companies with in-house seismic capabilities. Additionally, external factors, including changes in government policies and investment levels in the exploration and production sector, may impact project execution, revenue, and cash flow. The rating will remain sensitive to the Company’s ability to expand its project portfolio while maintaining timely and cost-efficient completion of contracts.

About the Entity
Polaris Danah Natural Resource Development (Pvt.) Limited, established on October 30, 2023, under the Companies Act 2017, the registered office is in Islamabad, Pakistan. As the successor to the Polaris Group of Companies, it represents Polaris Inc.'s expansion into Asia. Polaris Inc., based in Canada, is the country’s oldest seismic company, operational since 1996, with over 1,000 completed 2D and 3D seismic projects. Globally expanding in 2008, it now operates across four continents, tackling challenging environments like the Arctic, desert, jungle, and transition zones. The Company has a four-member Board of Directors, including CEO Mr. Abdel Latif Hakkoumi, who oversees operations in Pakistan.