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REDUCE on ONGC - Muted performance - HDFC Securities


REDUCE on ONGC - Muted performance - HDFC Securities
Posted On:
2021-02-16 04:37:24
(Time Zone: Arizona, USA)
Mr. Harshad Katkar, Institutional Research Analyst, HDFC Securities & Mr. Nilesh Ghuge, Institutional Research Analyst, HDFC Securities
Our REDUCE recommendation on ONGC with a price target of INR 101 is premised on (1) muted crude oil and gas realisations and (2) lack of production growth for oil. We expect oil prices to remain at ~USD 50/bbl in FY22/23E vs. USD 59/bbl in FY20, given the weak global macro. Lower oil and gas realisations will drag profitability down for ONGC. 3QFY21 revenue was 4% above our estimate, owing to a higher-than-expected crude oil price realisation of USD 44.2/bbl (vs the estimated USD 43.4/bbl). EBITDA in 3Q was 18% above our estimate owing to lower-than-expected opex. APAT was 15% below our estimate due to higher-than-anticipated finance cost and tax outgo. ....

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ONGC to form a subsidiary for gas business


ONGC to form a subsidiary for gas business
ONGC plans to begin natural gas production from the deepwater block KG-DWN-98/2 in about two to three months. ReutersPremium
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State-owned Oil and Natural Gas Corp (ONGC) today said that it will form subsidiary for its gas business.
In a regulatory filing ONGC stated, Board has approved creation of new wholly owned subsidiary company for focusing on Gas & LNG business value chain subject to necessary approvals.
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. 07 Apr 2021
The Company is being formed with the objective of sourcing, marketing and trading of natural gas, LNG business, Hydrogen enriched CNG(HCNG), gas to power business, bioenergy/bio-gas/bio methane/other bio fuels business, etc, it further added. ....

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ONGC net drops 67% to Rs 1,378 crore in Q3, to float gas biz subsidiary

India Business News: NEW DELHI: Flagship explorer ONGC’s December quarter net profit dropped 67% from a year ago to Rs 1,378 crore from Rs 4,2226 crore a year ago as a sha. ....

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