Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

Credit

We view China Oil & Gas (COG) as “Medium Risk” on the LARA scale. This takes into account: [1] regulatory risk, with previous delays of over three years in cost pass-through to tariffs in Qinghai (since resolved); and [2] the company's exposure to oil price volatility following its entry into the upstream oil & gas segment. COG’s main asset is its 51% interest in downstream gas provider China City Natural Gas (CCNG), the remaining 49% of which is held by Kunlun Energy, a subsidiary of SOE PetroChina. We believe the relationship with Kunlun secures COG's gas supply, and improves its ability to obtain gas distribution concessions. PetroChina’s parent, the China National Petroleum Corporation?, has provided financing to CCNG at competitive rates. Our fundamental Credit Bias on COG remains “Stable”, supported by the increase in sales volumes and stable cost pass-through from the core natural gas sales and distribution business. The company’s upstream oil & gas exploration business has also benefited from the sustained recovery in oil prices. Going forward, we expect COG to expand modestly and generate positive FCF. We view the company as “Weak” on the LAGA scale, due to the: [1] presence of family relationships among Board members; [2] poor disclosure on related-party transactions; and [3] investments outside the core natural gas business.

   We view China Oil & Gas (COG) as “Medium Risk” on the LARA scale. This takes into account: [1] regulatory risk, with previous delays of over three years in cost pass-through to tariffs in Qinghai (since resolved); and [2] the company's exposure to oil price volatility following its entry into the upstream oil & gas segment. COG’s main asset is its 51% interest in downstream gas provider China City Natural Gas (CCNG), the remaining 49% of which is held by Kunlun Energy, a subsidiary of SOE PetroChina.    We believe the relationship with Kunlun secures COG's gas supply, and improves its ability to obtain gas distribution concessions. PetroChina’s parent, the China National Petroleum Corporation?, has provided financing to CCNG at competitive rates.    Our fundamental Credit Bias on COG remains “Stable”, supported by the increase in sales volumes and stable cost pass-through from the core natural gas sales and distribution business. The company’s upstream oil & gas exploration business has also benefited from the sustained recovery in oil prices. Going forward, we expect COG to expand modestly and generate positive FCF.    We view the company as “Weak” on the LAGA scale, due to the: [1] presence of family relationships among Board members; [2] poor disclosure on related-party transactions; and [3] investments outside the core natural gas business. 

China Oil & Gas - Tear Sheet - Lucror Analytics

China Oil And Gas

China Oil & Gas - Tear Sheet - Lucror Analytics