“Fitch” beynəlxalq reytinq agentliyi Azərbaycan Dövlət Neft Şirkətinin (SOCAR) emitentin uzunmüddətli defolt reytinqi üzrə proqnozunu "Neqativ"dən "Sabit"ə dəyişib.
SOCAR-ın qorunmayan reytinqini isə “BB+” səviyyədə saxlayıb.
Reytinqdəki dəyişiklik əsasən, Azərbaycanın suveren reytinq proqnozunun BB+/”Sabit” səviyyədə təsdiq edilməsi ilə bağlıdır. Reytinq agentliyi əsaslandırıcı amillər sırasında SOCAR-ın tam dövlət mülkiyyətində olan şirkət olmasını, dövlət tərəfindən şirkətə maliyyə zəmanətləri, vəsait ayırmaları və nizamnamə kapitalının artırılması şəklində dəstəyin davam etdirildiyini, həmçinin SOCAR-ın sosial funksiyalarını və milli neft-qaz sənayesinin inkişafında dövlətin əsas iqtisadi-sənaye aləti olduğunu xüsusilə qeyd edib və şirkətin reytinqini dövlət reytinqinə bərabərləşdirib.
SOCAR-ın müstəqil kredit profili (SCP) “b+” kimi qiymətləndirilib, eyni zamanda yüksək borc yükünün hələ də şirkətin inkişafına əsas maneə törədən faktor olduğu vurğulanıb. Agentlik şirkətin borclanma səviyyəsinin yüksək olduğunu, lakin hələ də nəzarət edildiyini qeyd edib. Açıqlamada SOCAR-ın geoloji kəşfiyyat və hasilat həcminin azalmasına baxmayaraq, ticarət əməliyyatlarının bu kəsiri tarazlaşdırdığı bildirilib.
Dəstəkləyici Biznes Profili: SOCAR-ın “b+” səviyyəsində qiymətləndirilən müstəqil kredit profili (SCP) onun yüksək borclanma həddini, lakin eyni zamanda da yüksək hasilat səviyyəsini (gündəlik 267 min barel neft ekvivalenti (bne)) və təsdiqlənmiş 12 illik neft ehtiyatlarını nəzərə alır. Əməliyyatlardan ümumi borc nisbətinə qədər vəsait (FFO) səviyyəsi SOCAR-da hasilat bölməsində 20 dollar/bne olmaqla yaxşı, nəql bölməsində isə bu sektordakı digər nəhənglərdən (misal üçün, Royal Dutch Shell – AA-/”Sabit”, 32 dollar/bne) aşağı, Rusiya istehsalçılarına yaxın (Lukoyl – BBB+/”Sabit”, 20 dollar/bne) olmuşdur.
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Fitch Revises Outlook on Azerbaijan's SOCAR to Stable; Affirms at 'BB+'
Fitch Ratings - Moscow - 19 May 2021: Fitch Ratings has revised the Outlook on State Oil Company of the Azerbaijan Republic's (SOCAR) Long-Term Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDR and senior unsecured rating at 'BB+'. The Recovery Rating is 'RR4'.
The rating actions follow the revision of the Outlook on the sovereign rating of Azerbaijan (BB+/Stable). SOCAR is fully owned by the state and its rating is equalised with that of Azerbaijan under Fitch's Government-Related Entities (GRE) Rating Criteria. This is underpinned by state support provided to the company in the form of financial guarantees, cash contributions and equity injections, as well as SOCAR's social functions and its importance as a state vehicle for the development of oil and gas projects.
We assess SOCAR's Standalone Credit Profile (SCP) at 'b+', with high leverage being the main constraint.
KEY RATING DRIVERS
Leverage High but Under Control: SOCAR's 1H20 performance was better than expected in our previous rating case, with broadly flat EBITDA yoy, as weaker performance in the upstream segment was partially offset by stronger trading operations. We estimate 2020 EBITDA will have only moderately fallen yoy and should rebound in 2021, on stronger international oil prices and increased regulated fuel prices since January 2021. We expect funds from operations (FFO) net leverage to remain below 4.5x over 2021-2023, materially below our 6x downgrade sensitivity, and in line with the 'b+' SCP.
Supportive Business Profile: SOCAR's 'b+' SCP takes into account its high leverage, but also its fairly high production (267,000 barrels of oil equivalent (boe) per day) and robust oil proved reserve life of 12 years. SOCAR's unit profitability measured as consolidated FFO to total upstream production was healthy at USD20/boe in 2019, lower than that of integrated oil majors (e.g. Royal Dutch Shell plc, AA-/Stable, USD32/boe), which have stronger downstream divisions, and closer to that of Russian oil producers (e.g. PJSC Lukoil, BBB+/Stable, USD20/boe). The upstream segment is SOCAR's key profit driver.
Close Links with the State: SOCAR's rating is equalised with that of the state given their strong ties under Fitch's GRE Rating Criteria. We assess status, ownership and control and support track record factors as well as socio-political and financial implications of GRE's default as 'Strong' resulting in a score of 30.
As the IDR reflects the combination of the strength of state linkage and SOCAR's SCP, a deterioration of the SCP on a sustained basis may result in the IDR being notched down from the sovereign. Most oil and gas projects in Azerbaijan operate under production-sharing agreements, in which SOCAR has a minority stake and where it also represents the state and is involved in marketing the latter's share of crude oil and gas (profit oil). In addition, SOCAR has stakes in some other major energy projects promoted by the state, such as the Southern Gas Corridor (SGC).
Significant Tax Contributor: Taxes paid by SOCAR accounted for almost 10% of government revenue in 2019. The state guarantees 9% of SOCAR's debt and provides equity injections to cover cash deficits, when needed.
Social Functions: Our assessment of links between the state and SOCAR is also supported by the latter's social role. One of its key functions is production and sale of fuel at regulated prices to the domestic market, which are enough to cover the company's operating cash costs but are lower than international prices. Also, SOCAR employs more than 50,000 staff in Azerbaijan. It does not pay dividends but it may be required by the state to make cash contributions to the state budget, government agencies or to directly fund some social projects.
Performance Controlled by State: The state exercises significant control over SOCAR's profitability and balance sheet through regulation of domestic fuel prices, cash injections, government distributions and other measures. To a large extent, SOCAR's high leverage is a function of the company's close links with the state but we believe that the government has incentives to keep SOCAR adequately funded.
Moderating Capital Intensity: We expect SOCAR's capex to moderate given the SGC and the STAR refinery in Turkey, SOCAR's two large projects developed together with partners and not consolidated on the company's balance sheet, have been brought on stream and should not require material additional capital injections. However, we have limited visibility over possible cash outflows related to its other projects, such as its upstream projects and modernisation of the Heydar Aliyev refinery. Given this limited transparency we put more emphasis on SOCAR's historical performance when assessing its credit profile.
DERIVATION SUMMARY
We equalise SOCAR's rating with that of Azerbaijan to reflect the strong ties between the two. High leverage and limited visibility of its capex programme are the main constraints on SOCAR's 'b+' SCP. High leverage is typical for some national oil companies. SOCAR's three most relevant peers rated on a top-down or constrained rating basis are Petroleos Mexicanos (BB-/Stable, top-down minus 3) in Mexico, JSC National Company KazMunayGas (BBB-/Stable, top-down minus 1) in Kazakhstan, and Petroleo Brasileiro S.A. (BB-/Negative, constrained) in Brazil.
KEY ASSUMPTIONS
- Brent crude price: at USD58/bbl in 2021 followed by USD53/bbl until 2023
- Increased domestic fuel prices since January 2021: up 11% for RON 92 gasoline and 33% for diesel
- Broadly stable upstream production in 2021-2023
- USD/AZN exchange rate: 1.7 over 2019-2022
- Aggregate capex of AZN9 billion over 2021-2023
- Continued support from the state