Today we will look at two corporate debt securities as investment ideas for this week: Enterprise Products Partners L.P. and Public Joint Stock Company Koks.
In the current period of high expectations for lowering rates, the most distant securities are of interest, such as, for example, investment ratings, the youngest subordinated issue of the American giant Enterprise Products Partners L.P. due in 2078. Founded in 1968, Enterprise Products Partners L.P. took in 2018 105th place in the list of the largest American companies in terms of revenue. The issuer is engaged in processing and transportation of gas-condensate liquids and crude oil, owning more than 80 thousand km of pipelines. Headquartered in Houston (Texas). The company employs 7 thousand people.
In 2018, the issuer's revenue and EBITDA amounted to $ 36.5 billion and $ 6.7 billion, respectively, net profit was fixed at $ 4.2 billion. Shares Enterprise Products Partners L.P. traded on the NYSE, the company's current market capitalization is $ 63 billion.
Eurobond in the amount of 700 million dollars was placed in February last year.
Moody’s and Fitch recently confirmed PJSC Koks single B. ratings. The outlook change ratings from both agencies are "stable." In particular, Moody’s notes good liquidity ratios of the company and expects its leverage to drop to less than 3 from 2020 at the end of 2018. At the same time, analysts of the agency point out weak diversification of the product portfolio, dependence on volatile steel prices and the ruble exchange rate, and significant issuer capital expenditures.
The only Eurobond PJSC Koks (with maturity in 2022) is one of the most highly profitable securities in the Russian segment and looks quite competitive against the background of international peers.
Joint Managing Director
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