Standard & Poor's releases report on KazTransGaz

Standard & Poor's releases report on KazTransGaz

Baku, Azerbaijan, May 1

Trend:

KazTransGas (KTG) revealed strong financial results for 2018 on the back of increasing gas sales to China, it is expected to maintain strong credit metrics going forward, Trend reports via Standard & Poor's.

KTG continues to enjoy a moderately high likelihood of extraordinary support from the state, if needed, and remains strategically important to its parent, KazMunayGas (KMG), said the company.

The stable outlook mirrors that on KMG, and reflects the view that KTG’s solid performance will continue, with funds from operations to debt remaining above 30 percent on a sustainable basis, and that the level of state support will remain unchanged.

"At the same time, the company’s stand-alone financial performance has improved thanks to increasing gas export volumes to China, a favorable difference between gas purchase and gas sales price, and completion of key capital expenditure (capex) projects," said the report.

"Although we believe future profits from export sales could be volatile, depending on price evolution, the funds from operation to debt are to stay above 30 percent," the company said.

In October 2018, KTG and PetroChina International Co. Ltd. signed a sales and purchase agreement for 10 billion cubic meters annually for the next five years. In 2018, KTG sold 5.5 bcm to China and 2.4 bcm to Russia, which was the main factor behind EBITDA growth.

KTG expects that additional cash flows from gas trading will support solid credit metrics at the KTG level, with FFO to debt remaining above 30 percent on a sustainable basis.

KTG has almost completed its large investments in order to increase the pipeline capacity of its export route to China, and it is forecasted that capex will decrease to 100 billion - 110 billion tenge in 2019 and 80 billion tenge in 2020 after peak capex of 116 billion tenge in 2018.

"We further anticipate the company will be in a position to fund its investment program with internally generated cash flows," said the report of the company.

The stable outlook mirrors that on KTG’s immediate parent KMG, and it is expected that the company’s investment program will decrease to a moderate level after peak spending in 2018, FFO to debt will comfortably exceed 30 percent, and that the group structure will not change significantly.

The report said the upside of KMG's performance limits ratings upside would depend on KTG’s performance rather than support from the parent or the state.

KTG is the 100 percent controlled gas subsidiary of Kazakhstan's national hydrocarbon company KMG, which in turn is 100 percent state owned. KTG operates 46.000 kilometers of gas distribution networks, 18.000 km of gas transmission pipelines, 56 compressor stations, and three underground gas storage facilities.

KTG’s liquidity is considered adequate, based on the assumption that liquidity sources will exceed uses by more than 2 times over the next 12 months.

Subscribe to Trend in Google News! Subscribe
Iran updates COVID-19 protocols for international travelers
Iran updates COVID-19 protocols for international travelers
Turkey sees increase in number of Azerbaijani citizens visiting country
Turkey sees increase in number of Azerbaijani citizens visiting country
Azerbaijan's tourism agency prepares project for tourism dev’t in Karabakh
Azerbaijan's tourism agency prepares project for tourism dev’t in Karabakh
Loading Bars
Latest
Russian gymnast wins gold at FIG Trampoline Gymnastics World Age Group Competitions in individual trampoline jumping program
Three allies of Armenia in CSTO congratulate Azerbaijan on restoration of territorial integrity - opinion of Israeli expert
Next meeting of Azerbaijan-Pakistan intergovernmental commission to be held soon
President Ilham Aliyev met with Iranian President Seyyed Ebrahim Raisi (PHOTO)
Azerbaijan shares data on number of vaccinated citizens
President Ilham Aliyev met with Tajik President Emomali Rahmon
Azerbaijan confirms 1,662 more COVID-19 cases, 2,391 recoveries
Iran wants to hold meeting of joint economic cooperation commission with Kazakhstan – FM
Iran reveals COVID-19 data for November 28
President Ilham Aliyev meets with Pakistani President Arif Alvi (PHOTO)
ECO must be ready for challenges of modern world - President of Kyrgyzstan
Iran interested in comprehensively developing relations with Pakistan – Raisi
Importance of Zangazur corridor is obvious - Turkish President
Iran's relations with Tajikistan to continue in full force – President of Iran
Azerbaijan's achievements highly appreciated by international institutions - President Ilham Aliyev
In total disrespect and hatred to all Muslims, Armenia destroyed and desecrated our mosques - President Ilham Aliyev
President Ilham Aliyev takes part in official dinner in honor of participants of 15th Summit of Economic Cooperation Organization
Over 60% of adult population in country received two shots - Azerbaijani president
Finalists in individual trampoline among women announced at 28th FIG World Age Group Competitions in Baku
Iran fully supports the ECO
Iran seeks to promote ties with Turkmenistan - Iranian President
Azerbaijani servicemen suffer in mine explosion in Fuzuli district
Problem loans in Azerbaijani banks decrease for year
28th FIG Trampoline Gymnastics World Age Group Competitions continue in Baku (PHOTO)
Number of client accounts in Azerbaijani banks increases
Turkey discloses volume of cargo transshipped via Zonguldak port in 9M2021
Iran eyes increase in exports via customs of Markazi Province
Finalists in individual trampoline among men announced at 28th FIG World Age Group Competitions in Baku
Close relations between Iran, Azerbaijan, Turkey are important – Iranian President
Presidents of Kyrgyzstan, Turkmenistan discuss current areas of bilateral relations
Azerbaijan provided financial and humanitarian assistance to about 80 countries to support their fight against coronavirus - President Ilham Aliyev
Azerbaijan to allocate at least $1.3 billion for building new cities and towns in liberated territories in 2022 - President Ilham Aliyev
Our strategic foreign exchange reserves exceed our state external debt by over six times - President Ilham Aliyev
Over past 18 years, economy of Azerbaijan developed rapidly - President Ilham Aliyev
Finalists in double mini trampoline among women announced at 28th FIG World Age Group Competitions in Baku
Today I can say that Zangazur corridor becomes reality - President Aliyev (FULL SPEECH)
Confident that ECO Member States will benefit from Zangazur corridor - President Ilham Aliyev
Azerbaijan achieved favourable investment climate as result of large-scale reforms - President Ilham Aliyev
Finalists in tumbling among men announced at 28th FIG Trampoline Gymnastics World Age Group Competitions in Baku
Australia confirms two cases of Omicron COVID-19 variant
Zangazur Corridor to contribute to economic development of region - Turkish FM
President Ilham Aliyev participating in 15th Summit of Heads of ECO member-states in Turkmenistan (PHOTO/VIDEO)
Azerbaijani Defense Ministry presents weekly review (VIDEO)
Final day of 28th FIG Trampoline Gymnastics World Age Group Competitions starts at National Gymnastics Arena in Baku (PHOTO)
President of Azerbaijan Ilham Aliyev arrives in Turkmenistan for visit (PHOTO/VIDEO)
Azerbaijani, Iranian FMs meet at Economic Cooperation Council's meeting in Ashgabat
Georgia imposes new regulations for citizens from 8 countries
Turkey, Turkmenistan sign deals, strengthen ties in Erdoğan's visit
Indonesia bans arrivals from 8 African countries to curb Omicron variant
Volume of goods loaded/unloaded in Iranian ports up
Azerbaijan’s 10M2021 volume of loans issued to energy, chemistry and natural resources decreases
Kyrgyz president leaves for Turkmenistan for working visit
Kyrgyzstan adds 41 fresh COVID-19 cases
Access to finance remains major challenge for small businesses in Georgia - IFC
847 more COVID-19 cases reported in Kazakhstan
Parliamentary elections begin in Kyrgyzstan
Cooperation with regional countries, Iran’s top priority - İranian president
Spanish police march in Madrid to protest against 'Gag Law' reform
Storm Arwen: Third person dies as gale-force winds hit UK
U.S. imposes travel ban from eight African countries over Omicron variant
Israel to ban entry of foreigners from all countries over Omicron
Saudi Arabia allows entry of all travelers who received one dose of COVID-19 vaccine
Two workers die in accident preparing Spanish stadium for cup game
Iran's Energy Exchange announces products to be on sale on November 28
UK, Germany and Italy detect Omicron coronavirus variant cases
Results of Sochi summit fully reflect position of Azerbaijan - Russian expert
Awarding ceremony third day held as part of 28th FIG Trampoline Gymnastics World Age Group Competitions in Baku (PHOTOS)
Winners in synchronized trampoline jumping at 28th FIG Trampoline Gymnastics World Age Group Competitions in Baku determined
Baku names winners of World Age Group Competitions in jumping on double mini-trampoline for men
28th FIG Trampoline Gymnastics World Age Group Competitions: Russian gymnast takes first place in tumbling
Baku names winners of World Age Group Competitions in jumping on double mini-trampoline for women
Azercell announces contest on social network
Gymnast from Kazakhstan win gold in acrobatic jumping at 28th FIG Trampoline Gymnastics World Age Group Competitions
Best moments of third day of the World Age Group Competitions in Trampoline Gymnastics and Tumbling in Baku (PHOTOS)
World age group competition in Baku - Russian gymnast wins first place in individual trampoline jumping
Russian gymnast wins gold in individual trampoline jumping in Baku
Turkmenistan boosts imports of electrical goods from Turkey
Turkmenistan agrees to participate in Lapis-Lazuli project
Smoking to be banned in taxis in Georgia
Iran’s Bahar Azadi gold coin price rebounds
11,358 people received COVID-19 vaccine in Kyrgyzstan over past day
Prepared hard for the 28th World Competition in Baku - athlete from Denmark
Finalists in synchronized trampoline jumping among men and women announced at 28th FIG World Age Group Competitions in Baku
Finalists in individual trampoline jumping among men announced at 28th FIG World Age Group Competitions in Baku
Azerbaijan expects mutual steps from Armenia towards achieving peace - FM
Azerbaijani, Turkish FMs meet at Economic Cooperation Council's meeting in Ashgabat
Phone conversation held between Presidents of Azerbaijan and Belarus
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,617 more COVID-19 cases, 1,979 recoveries
ECO Council of FMs supports Azerbaijan's proposal to establish Clean Energy Center (PHOTO)
Buy/sell operations at Iran Mercantile Exchange revealed
Finalists in double mini-trampoline jumping among men announced at 28th FIG World Age Group Competitions in Baku
Finalists in acrobatic jumping among men named at 28th FIG World Age Group Competitions in Baku
Azerbaijani gymnast Seljan Mahsudova reaches finals of World Age Group competition
Kazakhstani Astana- Motors to produce Hyundai cars in Uzbekistan
Iran reveals COVID-19 data for November 27
Finalists in acrobatic jumping among women announced at 28th FIG World Age Group Competitions in Baku
Novavax developing vaccine that targets new COVID-19 variant
Eni sells some stakes to Snam
28th FIG Trampoline Gymnastics World Age Group Competitions underway in Baku (PHOTOS)
All news