Fitch Ratings ranks PetroVietnam's Standalone Credit Profile at 'BB+'

Illustrative photo. (Source: VNA)

Fitch Ratings affirmed the group’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Positive Outlook as well as senior unsecured rating at 'BB'.

The agency expected PetroVietnam’s earnings before interest, taxes, depreciation, and amortization (EBITDA) to double in 2021 to over 45 trillion VND (1.97 billion USD) from 2020 due to a recovery in crude oil prices, refining margins and distribution spreads.

It does not expect the current surge in COVID-19 infections in Vietnam to significantly affect PetroVietnam's earnings recovery, as Vietnam is a net importer of fuels, resulting in stable demand for the company's gas distribution, fertiliser and power segments.

In the first eight months of 2021, the group surpassed its production and business targets, with crude oil exploitation exceeding the plan by 12.7 percent and the production of nitrogen, petrol and LPG surpassing the plan by between 2-11 percent./.