The Russian rating agency “Expert RA” confirmed the credit rating of PJSC “OC” Rosneft “at the level of ruAAA, reported Online agencies. At the same time, the note view is static. The oil company’s rating is held at the highest level since July 2017.
“The agency rates the group’s industry’s resilience to external shocks as moderate. “This is due to the relatively stable global demand for hydrocarbons, low production costs, and the existence of a natural hedge mechanism in Russian oil companies that partially smoothes profit fluctuations due to oil price changes.”
Operating expenses for hydrocarbon production by Rosneft in 1Q 2023 were less than $3/barrel. AD This is one of the lowest rates in the world. As previously noted by Vedomosti, Persian Gulf mining companies’ benchmark is $3/boe, France’s TotalEnergies is $5.5/boe and British bp is $6.1/boe, Norway’s Equinor – $6.5/boe, Brazil Petrobras – 7.5 USD/boe boe.
The agency’s analysts also consider Rosneft’s competitive position in the market to be strong, despite the sanctions imposed on the company. This is due to the presence of high proven hydrocarbon reserves, low production costs and a diversified sales market structure. Thus, according to the results of the reserve audit according to the international classification of PRMS (Petrocarbon Management System), the company’s hydrocarbon reserves in category 1P as of December 31, 2022 amounted to 42.3 billion barrels, 2P – 84.2 billion barrels. ., 3R – 132.4 billion boe 2P regeneration exceeds 100% with an increase in reserves.
In addition, the Expert RA report noted the high efficiency of Rosneft’s business. The agency’s experts report strong financial results in the financial statements for the first quarter of 2023 under IFRS.
“Key financial indicators such as EBITDA and net income exceeded the expectations of analysts of all investment banks covering the company’s operations,” the report says.
Thus, the net profit attributable to shareholders increased by about 46% in the first quarter to 323 billion rubles. This is 37% higher than the consensus estimate of investment bank analysts. At the same time, EBITDA increased by 25.1% to RUB 672 billion.
EBITDA margin increased by 5 pp to reach a record level of 36.7%. on agreement. The company’s revenue for the first quarter of 2023 amounted to 1.823 trillion rubles.
According to analysts of the agency, Rosneft’s high profitability leads to its stable financial situation and strong liquidity. Operating cash flow is assumed to be greater than covering debt repayment and collection costs, capital expenditures and dividends, given the confirmed limits on cash balance and lines of credit.