Mexico Gives Pemex $5 Bln to Pay Debt
Mexico's government will give state-owned Pemex $5 billion so the world's most indebted oil company can pay off bonds, part of a plan to shore up accounts that also includes refinancing other bonds, the company said on Wednesday.Pemex, burdened by some $104 billion of debt, has a credit profile rated junk by Fitch and risks a downgrade by Moody's in coming…
Pemex Steering Clear of Deepwater
Petroleos Mexicanos will focus on shallow water projects and onshore plays, and avoid investing in its deepwater riches for now, as the ailing Mexican state-run oil company seeks to turn around a 14-year slide in crude production, a top official said on Thursday.Chief Financial Officer Alberto Velazquez outlined the approach the state-owned oil company known…
Fitch Downgrades Pemex Debt to 'Junk'
Fitch on Thursday became the first major ratings agency to downgrade the debt of Mexican oil company Pemex to "junk" status, in a major setback for President Andres Manuel Lopez Obrador's plans to revive the struggling state-run firm.Fitch changed Pemex's credit rating from investment grade to speculative grade, or "junk", with a negative outlook, a day after it downgraded Mexico's sovereign debt, a decision criticized by the Mexican finance
Pemex Shrugs off Losses; Eyes New Oilfields
Mexico's national oil company Pemex narrowed its multibillion-dollar losses last year, executives said on Wednesday, as it seeks to fast-track the development of 20 new fields this year in a bid to bring new streams of crude online.Long a source of Mexican pride and a potent political symbol, the state-owned company faces an increasingly uncertain future as oil output slides…
Citgo Loans Price in Potential Regime Change
The bank debt of oil refiner Citgo Petroleum Corp, US subsidiary of Petróleos de Venezuela SA (PDVSA), has been volatile in recent days as Venezuela’s political crisis deepens and the market prices in a potential regime change in the South American nation.The company’s US$650m term loan B jumped in secondary trading this week, according to a trader monitoring the debt…
US Sanctions Will Push Gazprom CEO into Shadows
Alexey Miller, head of Russian gas giant Gazprom, will have to lower his public profile and delegate to someone else his powers to clinch deals and raise financing now that he has been added to a U.S. sanctions blacklist, analysts said. Washington last week imposed sanctions against several Russian businessmen, companies and government officials, striking at associates of President Vladimir Putin to punish Moscow for a range of activities…
Fitch Lowers Noble Group Rating
Fitch Ratings cut commodity trader Noble Group's debt rating on Friday to two notches above default, citing the company's commencement of discussions on a debt restructuring. The agency lowered the rating by a notch to 'CC', which according to its rating criteria defines a situation where "default of some kind appears probable". Fitch previously had rated Noble 'CCC', which stated that "default is a real possibility".
Expanded US Sanctions May Affect Russia's Foreign O&G Expansion
Newly updated sanctions introduced by the United States against Moscow for its role in the Ukraine crisis may put a brake on Russia's future efforts to increase its exposure to the global oil and gas industry, analysts said on Wednesday. However, the punitive measures will have little immediate effect on the operations of Russian energy companies abroad, they said. The U.S.
Fitch: US LNG Shipments Signal Global Price Convergence
The emergence of US liquefied natural gas as a competitive alternative for European and Asian customers, combined with an oversupplied market, should drive more convergence between natural gas prices at major hubs and weaken the link between gas and oil prices, Fitch Ratings says. The first shipment of US liquefied natural gas (LNG) from Cheniere Energy's Sabine Pass facility to Europe arrived in Portugal at the end of April.
Fitch Places Noble Group on Watch for Downgrade
Fitch Ratings has placed commodities trade house Noble Group on watch for a potential downgrade, which would take the company's credit rating to junk status. Fellow ratings agencies Standard and Poor's and Moody's have both cut their ratings for Noble to junk status in recent months. Singapore-listed Noble, which trades commodities including coal, iron ore and oil…
LPC: Energy Companies Drain Loans Before Banks Clamp Down
Troubled US energy companies, maneuvering for stronger negotiating positions if filing for bankruptcy, are racing to tap cash still available under existing reserve-based loan commitments before banks cut their credit access next month. In April, lenders, in semi-annual valuations of oil and gas reserves backing these loans, are expected to cut available credit to many energy companies based on deeply depressed collateral prices.
Crude Rout Worsens, But Bond Funds Remain Confident
Big bond investors who have bet on high-yield oil producers are sticking to losing bets, waiting for a turnaround in the price of crude, even though their performance has suffered and fund assets have shrunk as oil has plunged. "Junk" rated U.S. exploration and production credits are on track to post their worst two-month performance since Barclays records began in early 1993. Energy credits became a bigger slice of the U.S.
S&P cuts Noble Group to Junk
Standard & Poor's (S&P) cut its credit rating on Noble Group to junk on Thursday, adding to concerns about financing costs for Asia's biggest commodity trader a week after a similar downgrade by Moody's Investors Service. "We downgraded Noble because the company's liquidity is below what we expect for a strong liquidity position, despite the sale of its agricultural unit…
Moody's Cuts Noble's Rating to Junk
Moody's says has concerns over company's liquidity. The chief executive of embattled commodity trader Noble Group Ltd defended its financial position after what it called an "unexpected" move by Moody's Investors Service to cut its credit rating to junk status, slamming its stocks and bonds. The one-notch cut to a Ba1 rating by Moody's, which said on Tuesday it had concerns over Noble's liquidity…
US Restructuring Firms Bulk up as Crude Drops
Law firms and banks are adding staff to their restructuring practices from Houston to New York City to scoop up new business as oil prices sink near 11-year lows, pressuring energy companies to slash debt or file for bankruptcy. At least two investment banks and one law firm have bulked up their energy and restructuring departments with new hires to handle the building workload.
Fitch: Middle East Oil & Gas Can Withstand $30 Oil
Fitch Ratings says that the ratings of the Middle Eastern oil and gas projects Ras Laffan Liquefied Natural Gas Company Limited II and Ras Laffan Liquefied Natural Gas Company Limited 3 (together RasGas) and Dolphin Energy Limited (DEL) can withstand oil prices of USD 30/bbl or below. The fitch Advisory goes on to say, "Both projects have high financial flexibility to weather the current market downturn…
Some US Bond Funds Bet on High-Yield Survivors
High-yield energy bonds are on track for their worst year since the global financial crisis yet some funds are holding on, convinced that markets underestimate the ability of many oil companies to ride out the crude price slump. Some money managers such as Western Asset Management Co., Eaton Vance Corp. and Aberdeen Asset Management have broadly held on to…
Oil Nears $48 on Bargain-Hunting
U.S. gasoline stocks up 1.4 mln barrels, more than forecast. Oil steadied at around $48 a barrel on Thursday, as investors sought bargains after a sharp fall the previous day on an unexpectedly large buildup in U.S. gasoline stocks and a tepid demand outlook. Brent crude climbed 40 cents to $48.15 a barrel by 0943 GMT, after ending the previous session down $1.33. U.S.
U.S. Oil Nears 6-year Low, China Weighs
China stock markets plunge on economic worries; Speculators bet on further price falls, trade data shows. U.S. oil prices fell towards six-year lows on Tuesday after stock markets tumbled in China, the world's largest energy consumer, adding to worries about global fuel demand at a time of heavy oversupply. Chinese stocks fell more than 6 percent on Tuesday as the yuan weakened against the dollar…
Weak oil, Saudi credit outlook cut to weigh on markets
Further weakness in oil prices and the decision by Fitch Ratings to cut its outlook for Saudi Arabia's debt look set to weigh on Middle East stock markets on Sunday. U.S. oil traded below $40 a barrel on Friday for the first time since the 2009 financial crisis, while Brent crude ended 2.5 percent lower at $45.46 a barrel. With no clear indication of where oil will bottom out, sentiment among Gulf equity investors is likely to stay fragile.
