Oil & Natural Gas Corporation Ltd’s (ONGC) $11.5 billion investment in Andhra Pradesh may put its cash flow under pressure, Moody’s said on Monday.
ONGC’s huge capital outlay can be credit negative and might lead to an upfront increase in leverage. Along with it, the development of oil and gas assets has a long gestation period before contributing meaningfully to earnings and cash flows, Moody’s said.
On January 27, the company signed a Memorandum of Understanding (MoU) with Andhra Pradesh Government for investing $5.07 billion in developing oil and gas finds off the state’s coast by 2019-20. Read More…
Credit By : Zeebiz
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