Fitch affirms long-term rating of JSC «KazTransOil» at «BBB-», the outlook is «Stable»

  • Nov 19, 2019
  • KazTransOil

 »  Press centre »  Press-releases »  Fitch affirms long-term rating of JSC «KazTransOil» at «BBB-», the outlook is «Stable» ¦  Fitch affirms long-term rating of JSC «KazTransOil» at «BBB-», the outlook is «Stable» On November 15, 2019 the international rating agency Fitch Ratings (hereinafter -Fitch) affirmed default long-term rating of KazTransOil JSC (hereinafter - KTO) in foreign currency at the level of "BBB-" with a "Stable" forecast.

Fitch notes that KTO's ratings reflect its strong operating and financial performance. KTO maintains a dominant position in the oil transportation sector in the Republic of Kazakhstan, which is crucial for the economy of the country. KTO has strong operational and strategic ties with JSC NC “KazMunayGas”, which receives significant benefits from the free cash flow of KTO through dividends. In addition, the company is not directly affected by fluctuations of oil prices, which is a favorable factor for its business profile.

According to Fitch, KTO has a positive impact due to agreements with Russian companies on the transit of Russian oil to China and Uzbekistan through Kazakhstan. PJSC “Rosneft” increased its volumes of transportation through Kazakhstan to China from 7 million tons in 2017 to 10 million tons in 2018.

At the same time, Fitch analysts emphasize the ability of KTO to increase export tariffs, which is a favorable factor in the creditworthiness of KTO. A similar change in tariffs (an increase of 10%) was approved on April 1, 2018.

Fitch considers KTO's separate operating profile to be in line with the “bbb” rating category, which is being held back JSC NC “KazMunayGas” and the regulatory environment. "KazTransOil" JSC and "Transneft" PJSC signed an agreement on payment of compensation to 14 Kazakh oil companies for contaminated oil As a National operator of the Republic of Kazakhstan through the trunk pipeline acts on behalf of 38 Kazakhstani oil companies and works on singing agreements with “Transneft” PJSC and “Transneft - Druzhba” JSC in case related to contamination of 699 tons of oil at "Druzhba" trunk oil pipeline system. Leading Engineer of operator services Department of KazTransOil JSC Sabyrzhan Nurgaliyev won a gold medal at the XXVII World Kettlebell Championship, organized by the International Gira Sport Federation (IGSF) and held in Melbourne. “KazTransOil” JSC announces about the progress in ensuring reliable and safe operation of the Company facilities “KazTransOil” JSC, implementing the program for ensuring reliable and safe operation of production facilities eliminated 1105 defects of the main oil trunk pipeline during January-September of 2019. Specialists of KazTransOil JSC at a high level have completed the largest overhaul in the history of the company Karachaganak Petroleum Operating B.V. Karachaganak Petroleum Operating B. V. (KPO) successfully completed the Plan Preventive Maintenance (PPM) in 2019, which was attended by the specialists of KazTransOil (KTO) JSC. KazTransOil increased oil supply to domestic refineries for 9 months in 2019 In the reporting period, the consolidated oil turnover of KazTransOil JSC amounted to 34 billion 277 million ton-kilometers, which is 322 million ton-kilometers less than in the same period in 2018. “KazTransOil” JSC announces about the progress of construction and reconstruction of the Astrakhan-Mangyshlak main water line “KazTransOil” JSC group of companies reports on the completion of the first phase of the Kulsary-Tengiz waterline construction within the framework of the Cooperation Agreement between “KazTransOil” JSC and “Tengizchevroil” LLP, signed on May 29, 2017. The Company does not have any obligation to provide interested persons the documents legally translated into English or any other language. Documents posted on the website in English, are not legal translation.

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