News Oil & Gas

Loss After Tax seen at Rs91,740 million

Result date: 12th November, 2022
Recommendation: Reduce
Target price: Rs150

Oil and Natural Gas Corporation (ONGC) could witness pressure on earnings (sequentially) owing to lower crude prices and imposition of export taxes from 1st July. Crude averaged USD 98/bbl during the quarter while the APM prices were stagnant at USD 6.1/mmbtu on a sequential basis. There could be some benefit to ONGC and other upstream companies arising from deregulation of oil sales from government defined procedure to a free market one.

As compared to the year-ago quarter, strong crude realizations are likely to be restricted by windfall taxes.

ONGC’s Profit After Tax or PAT could decline both sequentially as well as over the year-ago quarter.

Important management insights to watch out for:

  • Update on gas production from the KG Basin and key timelines thereof

  • Outlook on various field developments

Rs. Million

September 2022 estimates

YoY change

QoQ change

Profit After Tax




Source: Company, IIFL Research

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