International rating agency Standard & Poor's Revises GOGC Outlook to Stable from Negative

21 November, 2016
The international rating agency Standard & Poor's (S&P) has revised the outlook for Georgian Oil and Gas Corporation (GOGC) to stable from negative and affirmed „B+/B” credit rating.

As the agency points out, the improvement of the rating outlook reflects the anticipation that increased EBITDA (earnings before interest, taxes, depreciation, and amortization) gives the company opportunity to develop projects without further increase in loans. S&P experts consider that favorable gas purchase prices and successful commissioning of the Gardabani Thermal Power Plant will increase GOGC's EBITDA to over GEL 200 million in 2016, compared with GEL 125 million in 2015.

The agency positively evaluates the commencement of the development of two major projects – Gardabani 2 and Underground Gas Storage (USG) construction project by GOGC. The construction of Gardabani Thermal Power Plant 2 is planned to start in early 2017 and is expected to be commissioned in early 2019. The construction works for the USG facility will start in 2018 and complete by 2020.