Korea National Oil Corp.

Overview Key strengths Key risks Major government-related entity as the Korean government's sole oil policy arm. High debt levels. Monopoly in stockpiling and managing Korea's strategic oil reserves. Exposure to inherent earnings volatility and cyclicality of the oil and gas exploration and production business. Strong capital market standing as a key government-related entity. Smaller scale than other oil and gas companies in the region. We expect the company to continue benefiting from extraordinary government support in times of distress. We believe it plays a critical role as the government's sole legally mandated oil policy arm. KNOC will likely maintain a monopoly in the stockpiling and management of Korea's strategic oil reserves, while playing a key role in the government's green

...The ratings on Korea National Oil Corp. (KNOC) are equalized with those on Korea. We expect the company to continue benefiting from extraordinary government support in times of distress. We believe it plays a critical role as the government's sole legally mandated oil policy arm. KNOC will likely maintain a monopoly in the stockpiling and management of Korea's strategic oil reserves, while playing a key role in the government's green energy initiatives within the hydrogen-ammonia and carbon capture storage segments. The government's full ownership of the company also enables ongoing financial support and tight supervision. We believe KNOC will maintain strong access to credit markets as a major government-related entity....

Full Report