S&P Global Ratings has confirmed the credit rating of JSC «Uzbekneftegaz» at «B+» with a «stable» outlook
December 9, 2024 – S&P Global Ratings has affirmed the long-term credit rating of Uzbekneftegaz JSC at 'B+' and revised the outlook from negative to stable. This decision is based on the improvement in the company's liquidity management and the expected strengthening of its financial performance in the coming years.
In its report, the agency identifies several key factors contributing to the outlook revision:
Improved Liquidity:The stable outlook reflects the company's successful efforts in improving liquidity management. In particular, government support in refinancing debts has helped reduce liquidity and funding risks. Additionally, the restructuring of debts and financial obligations under the "Debt Recovery Plan" has significantly improved the debt and liquidity situation.
Growth in EBITDA and Cash Flow:EBITDA is expected to increase in 2024, with further growth projected in 2025-2026, supported by higher gas tariffs and dividends from joint ventures. Full utilization of the GTL plant's capacity will also positively impact the company's financial results.
Debt Load and Investments:In 2024-2026, the company plans significant capital expenditures to stabilize production and increase gas output. These investments, along with rising tariffs, should ensure the company’s long-term stability.
The agency emphasizes that it may upgrade the company's rating to 'BB-' in the future, provided that JSC "Uzbekneftegaz" continues to improve liquidity and financial performance, along with growth in EBITDA, effective debt management, and government support in refinancing debts.