Moody's Investors Service changed its outlook for global energy from (positive) to (stable), based on its expectation that the pace of underlying conditions across the industry will ease during The next 12-18 months.
The agency said in a report copied by (Namazone) that after the rapid rise in oil and gas prices in 2021, the expansion is profits and the cash flow generation in the industry will decline. Next year, even as prices continue to rise.
Elena Natucci, Senior Vice President of Investor Services at Moody's, said companies would consider increasing the investments needed to support current production and modest growth, while also racing to meet the increasing demands for shareholder dividends. and improve returns on capital employed.
Moody's global stable outlook tracks the earnings trends of the exploration and production (E&P) and integrated oil sectors, which dominate the global energy industry and which will not change much in 2022 after A strong recovery in profits.
Continuous recovery in global oil demand, gradual supply growth, and a manageable cost environment will provide a supportive macro backdrop for producers to keep their profits above 2019 levels. .
The agency indicated that many producers who did not invest enough in 2020-2021 will help increase capital budgets to stabilize production and stave off a potential decline in volumes.
