S&P alters Neptune view to positive

S&P said it changed Neptune Energy Group Midco Ltd.’s outlook to positive from stable.

“Given the high oil and gas prices, S&P Global Ratings expects Neptune to post exceptionally strong financial results in 2021. Results will likely remain healthy in 2022-2023. After a weak 2020, oil and gas prices rebounded very strongly in 2021. The economic recovery in many countries across the world boosted demand,” S&P said in a press release.

The agency said it forecasts Neptune’s adjusted EBITDA to double in 2021 to about $1.95 billion–$2.05 billion, from about $0.91 billion in 2020.

“This will likely translate into FFO to debt of 50%-54% in 2021, well above our 20% threshold for the current rating. Although we expect commodity prices will gradually decline in 2022, we anticipate that the price environment will remain supportive,” S&P said.

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