Petro Welt Technologies AG (alt)
Petro Welt Technologies AG: Moody’s once again confirms Petro Welt Technologies AG’s Ba3 rating
DGAP-News: Petro Welt Technologies AG
/ Key word(s): Rating
The affirmation of the rating reflects Moody’s expectation that the company will have sufficient financial buffer to withstand the market downturn in 2020-21 without a material deterioration in its credit quality. Although PeWeTe’s operating and financial performance will weaken over the next 12 to 18 months, its credit profile should remain resilient thanks to a large cash balance and the absence of debt except for a shareholder loan. In addition, some improvement in the company’s credit quality is possible starting in 2022. According to Moody ‘s summary, the spreading pandemic has depressed global oil demand and led to a sharp decline in oil prices. At the same time, substantial cuts in Russia’s oil production starting in May 2020 and continuing for two years under the OPEC+ deal will lower domestic demand for OFS services and put pressure on PeWeTe’s earnings and cash generation. However, the affirmation of the rating is based on the company’s robust balance sheet and very good liquidity (as of March 31, 2020, PeWeTe had around EUR 120 million of cash). PeWeTe’s credit quality also factors in the company’s strong market position in its niche segments, its well-invested modern asset base, and the company’s continuous adherence to its historically conservative financial policy and prudent approach to its development strategy. At the same time, the rating is constrained by the company’s small size compared with that of its peers, its highly concentrated customer base, the intensifying pricing pressure from its customers, and the company’s exposure to Russia’s less-developed regulatory, political and legal framework. Source: https://www.moodys.com/research/Moodys-affirms-PWTs-rating-stable-outlook–PR_425276 About Petro Welt Technologies AG Contact
29.05.2020 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Petro Welt Technologies AG |
Kärntner Ring 11-13 | |
1010 Wien | |
Austria | |
Phone: | +43 1 535 23 20 – 0 |
Fax: | +43 1 535 23 20 – 20 |
E-mail: | ir@pewete.com |
Internet: | www.pewete.com |
ISIN: | AT0000A00Y78 |
WKN: | A0JKWU |
Listed: | Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1058707 |
End of News | DGAP News Service |