Nostrum Oil and Gas - Fixed Income Analysis

Altynay Ibraimova, Stanislav ChuyevSeptember 18, 2017

A new issue of bonds maturing in 2022 allowed to refinancing part of the debt, reducing the risks of non-repayment of old eurobonds in 2019, and therefore we increase our recommendation on Nostrum Oil and Gas bonds from "SELL" to "HOLD". We also note the prospect of increasing the Company’s production capacity due to the completion of the GTU-3 project. However, current forecasts of the growth in oil prices, in our view, remain restrained and bear the risk of limited growth in cash flows. 

Other reports