The international ratings agency Fitch Ratings has given stable
forecasts for Russian and CIS oil and gas companies in 2011, Trend
reports.
Fitch Ratings believes that Russian oil and gas companies will
maintain extraction and financial indicators at the same levels and
will manage to finance their programs for capital investments. State
support for the companies was taken into account.
The world demand for energy carriers in 2011 will remain high. Fitch
expects that extraction of brownfield hydrocarbons will continue at
the same level, while the Greenfield deposits in Eastern Siberia and
the Caspian Sea will increase.
Gas prices on the internal market are forecast to rise by 15% in 2011
to achieve parity on the netback price with Europe in 2014.
Realization of plans for developing business in associated gas should
improve the ratings.
Fitch gives positive ratings to Russian and CIS companies for progress
in capital investments into exploration and extraction, especially for
supporting old and launching new deposits with advanced infrastructure
and in a hard financial climate.
Fitch expects Kazakh and Azerbaijani oil and gas companies to improve
the median indicator of adjusted leverage to funds from operation
(FFO) to 2.1x and 1.8x relatively.
The ratings agency expects more merging activities among companies in
2011 to increase market shares and competition with companies of
developed markets.
