We recommend to SELL Nostrum Oil & Gas’s bonds with maturity in February and November 2019. We believe that the Company does not generate sufficient cash flows and might not be able to repay the bonds totaling $960m at the current low oil prices. We expect negative free cash flow until 2018 and only $34m in 2019. Assessing the dynamics of future cash flows, we do not see tangible factors which compensate for a sizable impact of low oil prices.
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