Moody’s Investors Service (Moody’s) has changed its outlook on the global integrated oil and gas sector to positive from stable as higher profits from upstream operations fuel a faster recovery in earnings growth, says the rating agency in a report published today.
“We expect earnings growth for the global integrated oil and gas industry of between 13%-18% this year, assuming oil prices remain around the midpoint of our forecast oil price range of $40-$60 per barrel,” says Elena Nadtotchi, Vice President Senior Credit Officer at Moody’s.
The projected earnings increase follows EBITDA declines for the sector of 12% and 40%, respectively, in 2016 and 2015 on the back of falling oil and natural gas prices.
Higher profits from upstream operations are the main driver behind the accelerated recovery in the sector’s EBITDA. After cutting production costs by 20%-30% in 2015-16, the sector is set to deliver quicker improvement in operating margins in the higher oil price environment. Read More…
Credit By : Energy.economictimes.indiatimes.com
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