Post by account_disabled on Dec 27, 2023 5:43:09 GMT
Fitch Ratings has affirmed the long-term international credit rating (Issuer Default Rating) of PTT Exploration and Production Public Company Limited (PTTEP) at 'BBB+' with a stable credit outlook. PTTEP's credit rating is at the same level as the credit rating of its parent company, PTT Public Company Limited (PTT), which has a long-term international rating of 'BBB+'. The credit outlook is stable. stability Reflects the relationship in operations and strong strategic ties between the two companies PTTEP's Standalone Credit Profile remains at 'bbb' due to its strong financial and business profile. This is at the same level as companies in the oil and natural gas exploration and production business that are rated at 'BBB'. PTTEP still has the ability to raise debt without having a high impact on its credit rating. The company still has a debt ratio consistent with its rating.
This is despite Fitch's worsening assumptions that oil prices and sales volumes decline significantly. which is a result of the company It has net debt close to zero. Selling prices that are less volatile compared to changes in crude oil prices. Low cost of petroleum production and domestic demand is quite consistent Therefore, the risk of a standalone credit rating downgrade for PTTEP is low. and Fitch may consider upgrading the rating alone. In the case that the company There is further improvement in the status of oil and natural gas reserves WhatsApp Number List Factors affecting credit rating Strong relationship with parent company: Fitch considers the relationship between PTTEP and PTT to be strong. According to Fitch's credit rating criteria regarding the relationship between the parent company and its subsidiaries (Parent and Subsidiary Rating Linkage Criteria), reflecting the connected operations between the two companies, of which PTTEP is The operator of the petroleum exploration and production business of the PTT Group, PTTEP, sells more than 80 percent of its total production volume to PTT and the proportion of operating profits before interest, taxes, and depreciation.
price and amortization (EBITDA) from PTTEP accounted for 45 percent of the PTT Group in 2019. PTTEP's operations also play an important role in supporting the parent company's strategic role in Thailand's oil and natural gas industry. and helps increase energy security for the country. PTT has representatives on the PTTEP Board of Directors and appoints some of the company's senior executives. In addition, PTT is also involved in Supporting PTTEP in setting policies and strategies This includes large acquisitions. Lower selling price volatility: PTTEP adjusts natural gas selling prices every 3 to 12 months, with sales contracts based on the average crude oil index over the past 6 to 24 months. Therefore, Fitch expects The Company's natural gas selling price It will drop approximately 14 percent to approximately $6 per million Btu (mmbtu) in 2020 (in 2019, the price was $6.9 per million Btu) compared to the price of Brent crude oil. (Brent) which is expected to decrease by 46 percent Fitch expects natural gas prices to fall below 5 USD per million BTU in 2021 before increasing in line with Fitch's estimates of increased crude oil prices. Ph. has hedged against selling price risk.
This is despite Fitch's worsening assumptions that oil prices and sales volumes decline significantly. which is a result of the company It has net debt close to zero. Selling prices that are less volatile compared to changes in crude oil prices. Low cost of petroleum production and domestic demand is quite consistent Therefore, the risk of a standalone credit rating downgrade for PTTEP is low. and Fitch may consider upgrading the rating alone. In the case that the company There is further improvement in the status of oil and natural gas reserves WhatsApp Number List Factors affecting credit rating Strong relationship with parent company: Fitch considers the relationship between PTTEP and PTT to be strong. According to Fitch's credit rating criteria regarding the relationship between the parent company and its subsidiaries (Parent and Subsidiary Rating Linkage Criteria), reflecting the connected operations between the two companies, of which PTTEP is The operator of the petroleum exploration and production business of the PTT Group, PTTEP, sells more than 80 percent of its total production volume to PTT and the proportion of operating profits before interest, taxes, and depreciation.
price and amortization (EBITDA) from PTTEP accounted for 45 percent of the PTT Group in 2019. PTTEP's operations also play an important role in supporting the parent company's strategic role in Thailand's oil and natural gas industry. and helps increase energy security for the country. PTT has representatives on the PTTEP Board of Directors and appoints some of the company's senior executives. In addition, PTT is also involved in Supporting PTTEP in setting policies and strategies This includes large acquisitions. Lower selling price volatility: PTTEP adjusts natural gas selling prices every 3 to 12 months, with sales contracts based on the average crude oil index over the past 6 to 24 months. Therefore, Fitch expects The Company's natural gas selling price It will drop approximately 14 percent to approximately $6 per million Btu (mmbtu) in 2020 (in 2019, the price was $6.9 per million Btu) compared to the price of Brent crude oil. (Brent) which is expected to decrease by 46 percent Fitch expects natural gas prices to fall below 5 USD per million BTU in 2021 before increasing in line with Fitch's estimates of increased crude oil prices. Ph. has hedged against selling price risk.