Page 10 - Oil Companies
Oil companies likely to use improved cash flows to expand asset base: S&P
Indian oil and gas companies are likely use their improved cash flows from market-linked fuel prices to expand their asset base and enhance operational quality, S&P Global Ratings said today. They are expected to step up investments in upgrading refineries to meet cleaner fuel standards, improve yields and create flexible refinery configurations in product pipeline and gas infrastructure capacities, it said. "The combination of reform-driven improvements in financial health, lower crude oil prices, and forecasts of mid-single-digit demand growth for petroleum products puts Indian oil companies in a sweet spot to invest in growth," S&P Global Ratings credit analyst Vishal Kulkarni said. "We expect the fuel-price reforms in India since late 2014 to continue and enhance business and financial prospects for the oil and gas companies. Making fuel prices market linked has improved oil marketing companies' profitability, bolstered cash flows, and lowered their debt."
 "Oil companies likely to use improved cash flows to expand asset base: S&P")
Worries around OMCs appear to be overdone?
In sync with historical trends, govt may look to reduce excise duty to curtail impact of rising crude oil prices, believe analysts
 "Worries around OMCs appear to be overdone?")
Petronet chief wants oil, gas firms to jointly acquire assets abroad
The new model can involve floating either a consortium or an SPV that will scout for opportunities abroad
 "Petronet chief wants oil, gas firms to jointly acquire assets abroad")