The corporation has been rated BB (positive forecast) by Fitch Ratings Inc.
The Georgian Oil and Gas Company expects its revenues to increase to one billion GEL by 2023. According to the forecast presented to the G&T investors, in the next five years, the corporations’ revenues will go up to 1 billion 340 thousand GEL.
The total revenues of the corporation in 2017 came to 671.6 million GEL. The estimated growth of the revenue in 2019 is up to 716 million GEL, in 2020 up to 836 million GEL, in 2021 up to 861 million GEL, in 2022 up to 987 million GEL, and in 2023 the estimates exceed a billion GEL.
The largest share of the corporation’s income (65%) comes from supplies of natural gas, totaling 219.6 million GEL in the first half of the year, which marked an annual decrease of 43.4 million GEL annually.
Several project plans were listed as the reasoning behind the expected revenue growth. Among them are an underground gas storage facility project, business diversification, Georgia’s strategic geographical location, TANAP project, and others.
For reference, 100% of the shares of the corporation are owned by the state-owned Partnership Fund. The corporation has been rated BB (positive forecast) by Fitch Ratings Inc.
As a reminder, the General Director of the Georgian Oil and Gas Corporation, Davit Tvalabeishvili, is resigning from his post. As of next week, Mr. Tvalabeishvili will take the position of the chairman of the management board of the Georgian State Electrosystem, a post currently held by Sulkhan Zumburidze. It is as of yet unknown who will be appointed to the position of the next General Director of the Oil and Gas Corporation.
In Georgia, only two companies have revenues that exceed one billion GEL, but over 7000 companies have a revenue over one million GEL. According to the latest data by the Revenue Services, two taxpayers have received revenues of over one billion GEL. The subjects’ identities are confidential and are not made public by the Revenue Office. However, it is already known that, for example, BGEO group’s (currently Georgian Capital and BOG) revenues exceeded one billion GEL last year and came to 1.1 billion GEL.