global integrated oil and gas sector outlook turns positive
Tuesday 15 July 2025
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle

Global integrated oil and gas sector outlook turns positive

Themuslimchronicle, themuslimchronicle

Themuslimchronicle, themuslimchronicleGlobal integrated oil and gas sector outlook turns positive

The projected earnings increase follows EBITDA declines
Jeddah - Arab Today

Moody’s Investors Service (Moody's) has changed its outlook on the global integrated oil and gas sector to positive from stable as higher profits from upstream operations fuel a faster recovery in earnings growth.
“We expect earnings growth for the global integrated oil and gas industry of between 13 to 18 percent this year, assuming oil prices remain around the midpoint of our forecast oil price range of $40-$60 per barrel,” said Elena Nadtotchi, vice president and senior credit officer at Moody’s.
The projected earnings increase follows earnings before interest, tax, depreciation and amortization (EBITDA) declines for the sector of 12 percent and 40 percent, respectively, in 2016 and 2015 on the back of falling oil and natural gas prices, said a report issued by Moody’s.
The report said that higher profits from upstream operations are the main driver behind the accelerated recovery in the sector’s EBITDA. After cutting production costs by 20-30 percent in 2015-16, the sector is set to deliver quicker improvement in operating margins in the higher oil price environment, it added.
According to the report, the sector’s capital expenditure will likely plateau at around $130 billion to $135 billion in 2017-18 similar to the level achieved in 2016, after a 35 percent reduction from top level of over $200 million in 2013.
Total S.A., Statoil ASA and OMV AG delivered the highest reduction in capital expenditure in 2016 on a per barrel of oil equivalent basis, and plan to maintain the reduced level of investments.
Large European integrated companies — Royal Dutch Shell Plc., BP p.l.c. and Total S.A. — also aim to maintain scrip dividends amid the improving fundamental conditions in the industry. The scrip option should allow the sector overall to trend to positive free cash flow in 2017.
Moody’s report said that merger and acquisition (M&A) activity will likely increase as fundamental conditions in the sector continue to improve. Also, the credit profiles of global integrated oil and gas companies are set to recover in 2017, with all firms registering a turnaround in their leverage metrics at the end of 2016, the report added.

Source: Arab News

themuslimchronicle
themuslimchronicle

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

global integrated oil and gas sector outlook turns positive global integrated oil and gas sector outlook turns positive

 



Themuslimchronicle, themuslimchronicle

GMT 21:49 2018 Tuesday ,23 January

Trump to tell Erdogan of concern over Syria offensive

GMT 08:12 2017 Friday ,15 December

Bahrain leaders congratulated on national days

GMT 02:11 2017 Saturday ,09 September

US formally requests UN vote Monday on N. Korea

GMT 15:31 2017 Monday ,30 January

ONCF Reveals Statistics of 2016 and Budget of 2017

GMT 12:05 2016 Friday ,07 October

A US deal with Deutsche Bank 'better than trial'

GMT 09:53 2018 Monday ,01 January

Man City winning run ends in draw

GMT 11:54 2017 Thursday ,28 December

IS claims Kabul bombings

GMT 05:56 2015 Wednesday ,16 September

High time for Egypt to join strong economic blocs

GMT 16:43 2011 Friday ,08 July

Monaco\'s princess in South African charity

GMT 20:52 2016 Tuesday ,03 May

Leicester City wins English Premiership

GMT 04:58 2015 Tuesday ,22 September

Romo could miss half NFL season with shoulder injury

GMT 01:09 2017 Thursday ,16 February

Australian senator to form new conservative party

GMT 13:05 2016 Thursday ,31 March

Boko Haram Kill 6 Soldiers in Southeast Niger

GMT 15:53 2014 Thursday ,18 September

10 tips to have a successful marriage for men

GMT 01:44 2016 Thursday ,08 December

Int'l cooperation minister leaves for Jordan
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
 
 Themuslimchronicle Facebook,themuslimchronicle facebook  Themuslimchronicle Twitter,themuslimchronicle twitter Themuslimchronicle Rss,themuslimchronicle rss  Themuslimchronicle Youtube,themuslimchronicle youtube  Themuslimchronicle Youtube,themuslimchronicle youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

muslimchronicle muslimchronicle muslimchronicle muslimchronicle
themuslimchronicle themuslimchronicle themuslimchronicle
themuslimchronicle
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
themuslimchronicle, themuslimchronicle, themuslimchronicle