Connect with us

Companies

Asian refiners EBITDA will decline by around 30% says Moody’s

Moody’s Investors Service says in a new report that the aggregate EBITDA of Asian refiners will decline by around 30% in 2020

Pr News

Published

on

Moody’s Investors Service says in a new report that the aggregate EBITDA of Asian refiners will decline by around 30%

  • Aggregate EBITDA will decline around 30% in 2020 on steep inventory losses and weak margins
  • A gradual economic recovery will improve margins in 2021, but risks are tilted to the downside

“EBITDA and margin will improve in 2021 as a gradual economic recovery results in higher refining margins and the absence of inventory losses leads to higher earnings. But risks to margin recovery are firmly tilted to the downside.”

Hui Ting Sim, a Moody’s Analyst.

“Margin recovery will be delayed if a resurgence in infections leads to renewed lockdowns. We’re also seeing higher market imbalance, with a surge in refining capacity continuing through 2022 driven by investments in Asia and the Middle East, which will further weigh on the extent of margin recovery,” adds Sim.

Among rated Asian refiners, some are better positioned than others to withstand weaker-than-expected refining margins. Moody’s expects ENEOS will be best positioned to maintain its credit quality, whereas HPCL-Mittal Energy Limited (HMEL, Ba2 negative), Thai Oil Public Company Limited (Baa2 negative) and SK Innovation Co. Ltd. (SKI, Baa2 negative) have lower buffers.

Most rated Asian refiners have close links with their respective government or have strong shareholders, hence their refinancing risk is low. Moody’s expects them to maintain strong access to funding given their good relationships with banks or track record of access to capital markets.

Moody’s report covers the nine refining and marketing companies across the region:

Bharat Petroleum Corporation Limited (BPCL, Baa3 negative)

ENEOS Holdings, Inc. (Baa2 stable)

GS Caltex Corporation (Baa1 stable)

Hindustan Petroleum Corporation Ltd. (HPCL, Baa3 negative)

HPCL-Mittal Energy Limited (HMEL, Ba2 negative)

Indian Oil Corporation Ltd (IOCL, Baa3 negative)

S-OIL Corporation (Baa2 stable)

SK Innovation Co. Ltd. (SKI, Baa2 negative)

Thai Oil Public Company Limited (Baa2 negative)

Subscribers can access the report “Refining & marketing – Asia: Coronavirus will exacerbate oversupply and keep refining margins weak” at: http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1212868

Siam News Network includes top references news sites, Job Board, Business Directory and Classifieds Portal

Business

Thailand Approves Latest Economic Relief Package for Businesses

Some 250 billion baht (US$8 billion) was allocated for soft loans while the remaining 100 billion baht (US$3.2 billion) will go towards an ‘asset warehousing’ program whereby debtors can use their assets as loan collateral but will have the right to redeem their assets under a specific time frame.

Avatar

Published

on

On March 23, 2021, Thailand’s government approved its latest economic relief package, valued at 350 billion baht (US$11.2 billion), to support businesses in the country.

Loading...
(more…)

Continue Reading

Business

Asia-Pacific sees 3.9% growth in deal activity in February 2021

Boris Sullivan

Published

on

Chair’s Statement on the Informal ASEAN Ministerial Meeting (IAMM)

The Asia-Pacific (APAC) region saw a 3.9% month-on-month growth in deal activity (mergers & acquisitions, private equity and venture financing deals) from 1,126 deals to 1,170 deals in February 2021, according to GlobalData, a leading data and analytics company.

Loading...
(more…)

Continue Reading

Banking

Thai cabinet approves 350 billion baht Aid for COVID-hit Businesses

Thailand unveiled new measures to help small and medium COVID-hit businesses in the tourism industry hit by a liquidity crunch.

Olivier Languepin

Published

on

The Thai cabinet has approved assistance worth 350 billion baht($11 Billion) to help businesses affected by COVID-19 with soft loans and asset warehousing.

Loading...
(more…)

Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,973 other subscribers

Latest

Trending