Fitch: South-East Asian oil & gas companies face high capex amid low oil prices

(Bangkok/Singapore/Sydney-14 December 2014)-- Fitch Ratings says in a new report that low oil prices and high capex will weaken credit metrics for rated oil and gas companies in south-east Asia, but the agency expects ratings to remain stable in 2015.

South-east Asian oil companies continue to require high capex to maintain and increase their upstream and mid-stream production capacities.

Low oil prices will reduce their net operating cash generation in 2015, at a time when the capex flexibility of these operators is somewhat limited.

Energy price reforms to-date in Indonesia, Malaysia and Thailand have been generally neutral to marginally positive for the stand-alone credit profiles of rated state-linked issuers in these countries, although some uncertainties remain with regard to Thailand's energy sector reforms. (ends)