JCR-VIS Credit Rating Company Limited (JCR-V1S) has reaffirmed the entity ratings of Oil and Gas Development Company Limited (OGDCL) at 'AAA/A-1+' (Triple A/A One Plus). Outlook on the medium to long-term rating is 'Stab1e'. The ratings incorporate the company's strong sponsorship, with majority holding of the Government of Pakistan.
OGDCL is the largest oil and gas exploration and production (E&P) company in the country. The strategic nature of the company's business activities in an energy deficient country ensures strong demand of oil and gas products. OGDCL has a robust earnings profile emanating from the country's largest oil and gas reserves. In recent years, the company has experienced a slight decrease in production levels due to natural decline in reserves and fewer major discoveries.
The recent floods in the country also impacted production from some fields. Nevertheless, the company posted healthy gross margins primarily on the back of higher average price realised in FY10. Expectations regarding relatively higher global oil prices during 2H 11 will positively beat on the company's revenues.-PR
Comments
Comments are closed.