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The rating action was based on the compa- interest payments amount to $51mn and capi- $50mn in cash at all times, Moody’s notes that
ny’s improved operating results, which have tal spending in 2022 will hover around $30mn, PLNG has usually maintained cash amounts at
strengthen its liquidity position. The rating out- including about $8mn for the programed major around $100mn, which, together with its avail-
look is now stable. maintenance and $10mn for the completion of able revolver, helps protect the company against
Upgrades, Issuer: Peru LNG (PLNG) Cor- the shore-tension project. volatility in prices or volumes.
porate Family Rating, Upgraded to B2 from B3; PLNG’s B2 ratings are based on its exposure The stable rating outlook reflects Moody’s
Senior Unsecured Regular Bond/Debenture, to natural gas marker prices volatility; high view that PLNG’s credit profile will remain rel-
Upgraded to B2 from B3. Outlook Actions: operating risk; fluctuating leverage given vol- atively unchanged in the next 12-18 months as
Issuer: PLNG, Outlook, Changed To Stable atile cash flow; small, single operational asset higher operating cash is directed to fund basic
From Negative. base; and limited access to external funding. In obligations, such as interest payment, capital
Ratings Rationale: The action on PLNG’s rat- 2019-2021, high operating risk was evidenced by spending and debt amortisation, as well as cash
ings was based on its improved liquidity posi- recurring plant stoppages either due to external distributions to shareholders.
tion, which resulted from its ability to operate at events or unplanned shutdowns. These risks are Moody’s Investors Service, July 22 2022
full capacity since mid-September 2021, when somewhat counterbalanced by PLNG’s low sup-
its plant went back on after over 70 days of stop- ply risk, high capacity utilisation rates, limited
pages in the year. competition risk, minimum foreign-exchange POLICY
Moody’s estimates that in the last three quar- risk, implicit shareholders support and its high
ters through June 2022, solid commodities prices relevance to Peru’s trade balance and energy Ecopetrol announces
and volumes have helped boost the PLNG’s cash industry.
generation, which should continue elevated PLNG has adequate liquidity. The com- resignation of VP of
as compared to 2019-2021 if prices and vol- pany’s cash on hand amounted to $405mn in
umes remain relatively stable. Moody’s believes March 2022 and Moody’s expects it to generate corporate affairs and
that there is a low probability that PLNG’s sole more than enough operating cash flow through
plant goes through further major unexpected December 2023 to cover expenses and capital secretary general
mechanical problems, as occurred in 2021, con- spending. The company’s $40mn committed
sidering that relevant parts were replaced last revolving credit facility, currently fully availa- Ecopetrol informs that, effective as of August 18,
year and the company is about to complete a pro- ble, matures in March 2023 but Moody’s expects 2022, Mónica Jiménez, Vice President of Corpo-
gramed major maintenance with no surprises so PLNG to renew it for another three years upon rate Affairs and Secretary General, has decided
far. It is also positive that PLNG’s shore-tension maturity. Most of PLNG’s accounts payable to resign from the Company, to take on a new
vertical units project, aimed at improving the refer to the $110mn credit received from the professional challenge with another company.
ability to deliver cargoes during adverse weather off-taker SITME. PLNG’s debt maturity is still María Paula Camacho, current Legal Man-
conditions, was successfully completed last May. comfortable because the amortisation of the ager of New Business & Corporate, who has 24
Moody’s believes that, from now on, PLNG will existing notes begins in September 2024 (about years of experience within the Ecopetrol Group,
be able to balance its production more equitably $78mn in amortisation payments, twice a year). will become the interim Vice President of Cor-
across the year. Management expects to receive certain reim- porate Affairs and Secretary General, effective as
For 2022 PLNG’s management expects pro- bursement from property damage insurance, in of August 18, 2022.
duction to reach over 215 trillion British thermal connection with the unplanned plant shutdowns The Company hereby thanks Monica Jiménez
units (TBtus), about 60% higher than the 133 in 2021, but the amount and timing are still for her work and the achievements made for the
TBtus produced in 2021. Therefore, Moody’s unclear. PLNG’s shareholders, mostly financially Ecopetrol Group.
expects PLNG’s EBITDA to reach over $300mn strong and capable of providing support, helped Ecopetrol is the largest company in Colombia
in 2022, as compared to $145mn in 2021, if the company with liquidity support in 2021. and one of the main integrated energy compa-
Henry Hub averages $5.0 per million BTU in the Moody’s expects PLNG to pay dividends in 2022. nies in the American continent, with more than
year, as per the rating agency’s estimates. Annual Although the company must keep a minimum of 18,000 employees. In Colombia, it is responsible
for more than 60% of the hydrocarbon produc-
tion of most transportation, logistics, and hydro-
carbon refining systems, and it holds leading
positions in the petrochemicals and gas distribu-
tion segments. With the acquisition of 51.4% of
ISA’s shares, the company participates in energy
transmission, the management of real-time sys-
tems (XM), and the Barranquilla-Cartagena
coastal highway concession. At the international
level, Ecopetrol has a stake in strategic basins
in the American continent, with Drilling and
Exploration operations in the United States (Per-
mian basin and the Gulf of Mexico), Brazil, and
Mexico, and, through ISA and its subsidiaries,
Ecopetrol holds leading positions in the power
transmission business in Brazil, Chile, Peru, and
Bolivia, road concessions in Chile, and the tele-
communications sector.
Ecopetrol, July 22 2022

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