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

Medco Energi’s Q4 and FY 2019 results were in line with expectations. The company was unable to deleverage, with Debt/EBITDA stable at 4.9x. This was partly due to the Ophir acquisition and consolidation of six months of earnings from the acquired subsidiary. Going forward, we believe Medco will be able to survive at least a year of low (USD 25-35/bbl) oil prices. The immediate impact of the oil crash is mitigated by Medco's use of fixed-price gas contracts and hedging. The company also benefits from its low operational costs (production cash costs of below USD 10/boe, and F&D costs of c. USD 12.5/boe). However, if Brent fails to recover and stay above USD 40-50/bbl levels over the medium term, we believe Medco could start to face challenges. We also foresee rating downgrades if Brent fails to recover above USD 40-50/bbl by late 2020.

  Medco Energi’s Q4 and FY 2019 results were in line with expectations. The company was unable to deleverage, with Debt/EBITDA stable at 4.9x. This was partly due to the Ophir acquisition and consolidation of six months of earnings from the acquired subsidiary. Going forward, we believe Medco will be able to survive at least a year of low (USD 25-35/bbl) oil prices. The immediate impact of the oil crash is mitigated by Medco's use of fixed-price gas contracts and hedging. The company also benefits from its low operational costs (production cash costs of below USD 10/boe, and F&D costs of c. USD 12.5/boe).   However, if Brent fails to recover and stay above USD 40-50/bbl levels over the medium term, we believe Medco could start to face challenges. We also foresee rating downgrades if Brent fails to recover above USD 40-50/bbl by late 2020.  

Medco Energi - Earnings Flash - FY 2019 Results - Lucror Analytics