Mar 2026 · Credit
Europe's glassmakers: premium on managing energy risks to steady credit metrics as gas prices surge
By Rohit Nair, Director, Corporate Ratings
The surge in European natural gas prices with the outbreak of war in the Middle East could transform a hitherto relatively stable year for European glass manufacturers into a challenging test of their hedging strategies and liquidity management.
Much depends on how the conflict lasts and the longer-term impact on energy prices, but it is glass manufacturers with higher levels of hedging that should be able to manage the spike in prices best. Those exposed to spot pricing will experience a faster deterioration in EBITDA and higher cash burn – hence, the uneven impact on credit metrics.