Indian Omcs News Today

Goldman Sachs 12-month target for Reliance Industries now stands at Rs 2,885 versus Rs 2,660 earlier

"We estimate that the OMCs will start incurring EBITDA losses in the second half of fiscal 2024 if crude oil prices increase to around $100/bbl. Nonetheless, we believe high oil prices are unlikely to be sustained for long as global growth weakens," Moodys analyst Sweta Patodia said.

According to a poll of 12 experts from brokerages and rating agencies, retail prices of petrol and diesel in India are expected to remain in the current range.

Margins for the oil refining and retailing sector have moved off their peaks, and the average integrated margins (refining plus marketing) for oil marketing companies (OMCs) have normalised. The ascent in crude oil prices, combined with static retail prices, has depressed marketing margins for diesel and petrol. However, the fall in marketing margins has been offset by increased gross refining margins (GRMs).

Lower crude oil costs and higher marketing margins are expected to raise the fortunes of oil marketing companies (OMCs) in the first quarter (Q1) of 2023-24 (FY24), while city gas distribution (CGD) companies could also benefit from lower spot prices of liquefied natural gas (LNG). However, in a break from the past, growth trends are expected to diverge for various segments within the broad energy sector. Analysts expect the earnings from gas production to go down for upstream national oil and g...

Over the past one month, shares of Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation (IOCL), and Hindustan Petroleum Corporation Ltd (HPCL) have risen 10-16 percent. And have gained around 18-33 percent during the past three months.

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Despite weak performance in FY23, Indian oil and gas firms are expected to see revenue and margin growth in FY24 due to lower energy costs and a growing domestic consumer market, according to brokerage firms including Anand Rathi, Nuvama and Nirmal Bang. Firms such as GAIL, Gujarat Gas and Bharat Petroleum Corporation are among top picks. OMCs such as BPCL and IOCL also have strong dividend profiles and counter-cyclical prices, said Nuvama. However, fuel price reductions could pose a risk to ear...

IOC and BPCL have reported a strong GRM as compared to large independent refiners like Reliance Industries Limited, Chennai Petroleum Corporation and Mangalore Refineries and Petrochemical Limited.

HPCL is trading below the 50- and 100-day moving averages, which signals a bearish trend in the stock. A rise in the price of crude will only add to the oil marketing companys worries