Oil and Natural Gas Corporation Ltd.: Update to credit analysis

Oil and Natural Gas Corporation Ltd.: Update following outlook change to negative - Credit Opinion – 2019/11/18 – US$ 250.00 – ...On 8 November we affirmed Oil and Natural Gas Corporation Ltd.'s (ONGC) Baa1 local and foreign currency issuer rating as well as its baa1 Baseline Credit Assessment (BCA) and changed the outlook to negative from stable. The change in outlook on ONGC followed the change in outlook on India's Baa2 sovereign rating to negative from stable. ONGC's Baa1 ratings are constrained ...

Oil and Natural Gas Corporation Ltd.: Indias natural gas price decrease is credit negative for ONGC - Issuer Comment – 2019/10/03 – US$ 200.00 – ...On 30 September 2019, the Government of India (Baa2 stable) announced a 12.5% reduction in domestic natural gas prices to $3.23 per million British thermal units (mmbtu) from $3.69/mmbtu (on a gross calorific value basis). This is the first reduction in gas prices in India since April 2017. The price decrease is credit negative for Oil and Natural Gas Corporation Ltd. (ONGC, Baa1 stable) because its revenue and earnings from the gas business will fall by around INR14.6 billion ($207 million). The decline is equal to 0.3% of the company's expected consolidated revenue and around 2% of consolidated EBITDA for fiscal 2020, which ends on 31 March 2020. Still, the decline in natural gas revenue and earnings will have a limited effect on ONGC's metrics for fiscal 2020 because its gas business is small compared with its total upstream business. For the year ended March 2019, ONGC derived only about 17% of its revenue (excluding downstream operations) from gas, with most of its revenue coming from...

Moody's assigns (P)Baa1 to ONGC's MTN program - Rating Action – 2019/08/30 – US$ 180.00 – ...MOODY'S CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS OR MOODY'S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK. All information contained...

Oil and Natural Gas Corporation Ltd.: Update to credit analysis - Credit Opinion – 2019/07/19 – US$ 250.00 – ...Oil and Natural Gas Corporation Ltd.'s (ONGC) Baa1 issuer ratings are primarily driven by its standalone credit profile, as captured in its baa1 Baseline Credit Assessment (BCA), which reflects the company's (1) position as the largest integrated oil and gas company in India, with significant reserves, production volume and crude distillation capacity; (2) substantial operating cash flow generation capacity; and (3) credit metrics, which have improved, although they will remain constrained by volatile, but range-bound, oil prices and high shareholder returns. At the same time, the BCA incorporates our expectation that the company will not be asked to share fuel subsidies as long as oil prices remain below $70 per barrel. The rating also incorporates our expectation that ONGC will continue to pursue shareholder- friendly policies, such as high dividend payments and share buybacks. These policies are largely driven by the Government of India (Baa2 stable), which continues to expect high dividends...

Moody's affirms ONGC's Baa1 ratings; outlook stable - Rating Action – 2019/07/16 – US$ 180.00 – ...MOODY'S CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS OR MOODY'S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK. All information contained...

Oil and Natural Gas Corporation Ltd.: Key Facts and Statistics - FYE March 2018 - Issuer Profile – 2019/01/03 – US$ 200.00 – ...Oil and Natural Gas Corporation Ltd. (ONGC) is India's largest integrated oil and gas company. Its main operations include upstream exploration and production (E&P), where the company recorded a consolidated oil and gas production of 1.29 million barrels of oil equivalent (boe) per day for the fiscal year ended March 2018 (fiscal 2018) and consolidated reserves (1P) of 7.2 billion boe as of 31 March 2018. ONGC accounted for over 70% of the country's crude oil production and approximately 75% of the country's gas production in fiscal 2018. Through its wholly owned subsidiary ONGC Videsh Limited (OVL), ONGC is engaged in 41 E&P projects in 20 countries. Through various joint ventures (JV) and associates, ONGC also conducts downstream activities, including those related to refining, petrochemicals, power generation and marketing of liquefied natural gas (LNG). It holds interests in four refineries, with a total refining capacity of 42.2 million tons per annum (mmtpa) or 847 thousand barrels...

Oil and Natural Gas Corporation Ltd.: Update to credit analysis - Credit Opinion – 2018/10/01 – US$ 250.00 – ...Oil and Natural Gas Corporation Ltd.'s (ONGC) Baa1 issuer ratings are primarily driven by its standalone credit profile as captured in its baa1 Baseline Credit Assessment (BCA). The BCA of baa1 reflects the company's (1) position as the largest integrated oil and gas company in India with significant production and reserves, along with refining and marketing of petroleum products in the country; (2) strong credit metrics despite its acquisition of Government of India's (Baa2 stable) 51.11% stake in Hindustan Petroleum Corporation Ltd. (HPCL, Baa2 stable) in January 2018; and (3) substantial operating cash flow generation capacity, which can fund its planned capital spending. The rating also incorporates our expectation that the government will ask ONGC to share the fuel subsidy burden either through increase in taxes or by asking it to sell crude oil at a discount to downstream companies. Although such a scenario will be credit negative for ONGC, it can be accommodated in the company's...

Oil and Natural Gas Corporation Ltd.: ONGC's record high EBITDA in Q1 will improve financial flexibility, a credit positive - Issuer Comment – 2018/08/06 – US$ 200.00 – ...ONGC's standalone reported EBITDA without Moody's standard adjustments. Sources: Company filings, Moody's Investors Service Estimates Exhibit 3...

Oil and Natural Gas Corporation Ltd.: Indias natural gas price increase is credit positive for ONGC - Issuer Comment – 2018/04/03 – US$ 200.00 – ...On 1 April, the Government of India (Baa2 stable) increased the price of domestic natural gas to $3.06 per million British thermal units (mmbtu) from $2.89/mmbtu (on gross calorific value basis). At the same time the government also increased the price ceiling for natural gas produced from deep water blocks to $6.78 per mmbtu from $6.3 per mmbtu. The price increase is credit positive for Oil and Natural Gas Corporation Ltd. (ONGC, Baa1 stable), because it will result in higher revenues and cash flows. The price increase is applicable for the period 1st of April, 2018 to 30th of September, 2018 and is calculated using the gas pricing formula implemented in November 2014, which revises the domestic natural gas prices every six months. Gas prices in India are determined by taking a volume weighted annual average of the prices prevailing in Henry Hub (US), National Balancing Point (UK excluding Russia), Alberta (Canada) and Russia. The ceiling price is the lowest of the import price of fuel...

Oil and Natural Gas Corporation Ltd.: Update following a 51.1% stake acquisition in HPCL - Credit Opinion – 2018/02/19 – US$ 250.00 – ...Oil and Natural Gas Corporation Ltd.'s (ONGC) Baa1 issuer ratings are primarily driven by its standalone credit profile as captured in its baa1 baseline credit assessment (BCA). The baa1 BCA reflects (1) its position as the largest integrated oil & gas company in India with significant production and reserves, along with refining and marketing of petroleum products in India; (2) strong credit metrics, which have weakened but remain appropriate for its ratings following the acquisition of Indian government's (Baa2 stable) 51.1% stake in Hindustan Petroleum Corporation Limited (HPCL, Baa2 stable); (3) substantial operating cash flow generation capacity which can sustain its planned mid-term capital spending. At the same time, the BCA incorporates our expectation that the company will not be asked to share fuel subsidies as long as the oil prices stay below $60-$70 per barrel. Despite our expectation of high likelihood of extraordinary support from the Government of India, the lower sovereign...