Moody’s Ratings has affirmed a stable outlook for Indian Oil Corporation Ltd (IOCL) and Bharat Petroleum Corporation Limited (BPCL). According to Sweta Patodia, a Moody’s Ratings Assistant Vice President and Analyst, the affirmation is based on the expectation that both companies will maintain strong credit metrics over the next 2-3 years, despite anticipated earnings moderation and high capital expenditures.
Moody’s also projects crude oil prices to stay around current levels for the upcoming months, which should support healthy marketing margins even as they normalize from the elevated levels seen in 2023. The stable outlook for IOCL’s rating mirrors the stable outlook for the government of India, as noted by Moody’s.
IOCL, a key player in the downstream sector, focuses on oil refining, marketing, and distribution of petroleum products, petrochemicals, and natural gas.
With eleven refineries and a total capacity of 1.6 million barrels per day, IOCL is the largest downstream oil company in India, holding approximately 31% of the domestic refining capacity. The company also boasts an extensive pipeline and retail network, along with petrochemical operations and a gas distribution business.
As reported by freepressjournal.in, regarding BPCL, Moody’s expects the company’s operating performance to remain robust, driven by continued growth in petroleum product consumption in India and a favorable refining and marketing margin environment.
