JSC Uzbekneftegaz

Overview Key strengths Key risks Dominant position in Uzbekistan's gas market. Concentration of assets and production solely in the high-risk country of Uzbekistan. Vertical integration into refining. Comparatively low regulated gas prices. Low cost of production. Declining gas production, which requires large capital expenditure (capex) to reverse. High leverage and weak liquidity. UNG has large debt amortization of about Uzbekistani sum (UZS) 13.8 trillion in 2025, resulting in a weak liquidity sources to uses ratio of 0.6x. The ratio is comparable to a year ago and we do not expect it to deteriorate much further. UNG's performance is improving slightly, which will gradually strengthen cash flow generation. If the company increases the average maturity of its debt through upcoming maturities

...Liquidity at Uzbekneftegaz JSC (UNG) is no longer deteriorating, which led us to revise our outlook to stable in December 2024. UNG has large debt amortization of about Uzbekistani sum (UZS) 13.8 trillion in 2025, resulting in a weak liquidity sources to uses ratio of 0.6x. The ratio is comparable to a year ago and we do not expect it to deteriorate much further. UNG's performance is improving slightly, which will gradually strengthen cash flow generation. If the company increases the average maturity of its debt through upcoming maturities with longer- term instruments, this could boost liquidity further. We note that UNG has improved its approach to liquidity management, through better oversight of covenants and debt maturities....

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