TASHKENT, Uzbekistan, December 11. S&P Global Ratings (international ratings agency) has affirmed the long-term credit rating of Uzbekneftegaz (the oil and gas company of Uzbekistan) at 'B+' and revised the outlook from negative to stable, Uzbekneftegaz told Trend.
This decision reflects the company's improved liquidity management and anticipated strengthening of its financial performance in the coming years.
The rating agency highlights several factors driving the outlook revision. Uzbekneftegaz has successfully enhanced its liquidity management, with government support playing a crucial role in refinancing debts, reducing liquidity risks, and addressing funding gaps. The restructuring of debt and financial obligations under the "Debt Settlement Plan" has significantly improved the company’s debt profile and liquidity position.
Looking ahead, S&P projects growth in EBITDA starting in 2024, with further increases expected in 2025 and 2026. This growth will be supported by higher gas tariffs, dividends from joint ventures, and the full operational capacity of the GTL plant, which is set to positively impact the company's financial performance.
While the company plans substantial capital expenditures from 2024 to 2026 to stabilize production and increase gas extraction volumes, these investments, along with tariff adjustments, are expected to secure long-term financial stability.
S&P also noted the potential for a future upgrade to 'BB-' if Uzbekneftegaz continues to improve liquidity and financial results, driven by EBITDA growth, effective debt management, and consistent government support for debt refinancing.