PUBLICATION
Mar 23, 2020
Oil & Gas dividend revisions
The oil-price collapse, as a result of the growing Covid-19
outbreak and the ensuing price war between OPEC+ members, has wiped
out tens of billions of dollars in energy-company stock market
value in the last weeks. This calls into question oil & gas
companies' ability to sustain dividends, considering their
financial flexibility and the debt owed to bondholders and banks in
the coming years As such, given this current environment we have reviewed
forecasts for oil & gas companies globally and cut dividends
for names underpinned by indicators such as Net Debt/EBITDA,
Dividend Yield and debt maturing through FY22, signaling dividend
sustainability risk. We will continue monitoring our forecasts across the oil &
gas sector, given the uncertainty presented by depressed oil prices
and the Covid-19 situation globally. |
|
Stock Name | Ticker | NetDebt/EBITDA | Curr. Div Yield | Forecast Div Yield | Debt- FY22 | DivCut in past | Prev. FY20DPS | Rev. FY20DPS | Antero Midstr | AM | 5.45.x | 37.81% | 15.70% | $959m | No | $1.23 | $0.4 | BP plc | BP | 1.60x | 13.20% | 13.20% | No | Yes | $0.4225 | $0.42 | CNOOC | 0883.HK | 0.80x | 6.50% | 10.% | CNY 31bn | Yes | CNY 0.61 | CNY 0.42 | ConocoPhillips | COP | 0.56x | 5.58% | 2.30% | $952m | Yes | $1.68 | $0.64 | Dialog Group | DIAL.KL | 1.37x | 1.20% | 1.40% | No | Yes | MYR 0.016 | MYR 0.015 | Formosa Petro | 6505.TW | 1.30x | 4.70% | 3.30% | TWD 2.2bn | Yes | TWD 4.1 | TWD 2.2 | Genesis Energy | GEL | 5.80x | 58.36% | 21.22% | $1.7bn | Yes | $2.2 | $0.8 | IRPC Pub Co | IRPC.BK | 4.07x | 1.90% | 2.20% | THB 19bn | Yes | THB 0 | THB 0 | Kinder Morgan | KMI | 5.34x | 7.85% | 5.10% | 7.0bn | Yes | $1 | $0.60 | Murphy Oil | MUR | 1.87x | 16.88% | 7.10% | $578m | Yes | $1 | $0.4 | Noble Energy | NBL | 3.21x | 11.61% | 5.92% | $900m | Yes | $0.48 | $0.24 | ONEOK Inc | OKE | 5.43x | 15.84% | 4.70% | $2.7bn | No | $3.74 | $1 | PetroChina | 0857.HK | 0.98x | 4.90% | 6.30% | CNY 73bn | Yes | CNY 0.11 | CNY 0.05 | PTT Expl | PTTEP.BK | 0.05x | 6.60% | 9.10% | No | Yes | THB 2.5 | THB 1.75 | PTT Pub Co | PTT.BK | 1.12x | 6.10% | 5.80% | THB 114bn | Yes | THB 1 | THB 0.6 | S Oil | 010950.KS | 3.72x | 0.29% | 0.30% | KRW 1560bn | Yes | KRW 2500 | KRW 900 | Sinopec | 0386.HK | -0.03x | 7.90% | 8.90% | CNY 20bn | Yes | CNY 0.24 | CNY 0.2 | SK Innovation | 096770.KS | 2.86x | 2.60% | 5.60% | KRW 2350bn | Yes | KRW 3800 | KRW 3000 | TechnipFMC | FTI | 0.23x | 2.30% | 0.00% | $1.3bn | Yes | $0.52 | $0 | Thai Oil Public | TOP.BK | 5.19x | 4.50% | 5.50% | THB 6.0bn | Yes | THB 1.35 | THB 1 | Williams Corp | WMB | 5.40x | 11.86% | 6.90% | $4.9bn | Yes | $1.6 | $0.80 | Wood Group | WG | 2.00x | 18.90% | 18.70% | $200m | No | $0.358 | $0.353 |
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This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.
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