ONGC Q3 Preview: Profit may decline on weak crude, gas price realisations
In the second quarter, ONGC recorded a 65% YoY rise in consolidated net profit to Rs 13,734 crore and revenue from operations dropped 13% to Rs 1.47 lakh crore.
- Feb 10, 2024,
- Updated Feb 10, 2024 8:39 AM IST
Oil and Natural Gas Corp will report its earnings for the third quarter of fiscal 2024 today. The oil major may see a dip in the December quarter net profit on the back of lower crude realisation and GST provisioning.
It's net profit is likely to fall around 13% year-on-year. Net sales are anticipated to remain flat sequentially. In the second quarter, ONGC recorded a 65% YoY rise in consolidated net profit to Rs 13,734 crore and revenue from operations dropped 13% to Rs 1.47 lakh crore.
Kotak equities: Brokerage models overall crude oil sales volumes of 4.7 mmt, natural gas sales volumes at 4.1 bcm and gross crude price realization of US$82.6/bbl and net oil price realization (post-royalty, windfall tax and cess) of $52/bbl, as lower Brent prices would be partly offset by reduction in windfall taxes.
Nuvama: Broker sees substantial 12 percent on-year EBITDA decline for ONGC due to lower crude and gas prices. Brent prices fell 7 percent annually and 4 percent sequentially in Q3FY24, and APM gas prices dropped by 24 percent to $6.5/mmbtu, as per the Kirit Parikh committee recommendation from April 2023. Anticipated declines include 3 percent on-year and 4 percent on-year in oil and gas production, with a flat on-quarter performance across segments.
JM Financial: The brokerage sees assumed net crude realisation at $72.5 per bbl in line with Brent price less windfall tax of $10 per bbl on domestic crude output. Domestic APM gas realisations to remain flat at $ 6.5/mmbtu. Overall crude sales volume to rise 0.2% QoQ and overall gas sales volume should be up 0.5% QoQ.
Oil and Natural Gas Corp will report its earnings for the third quarter of fiscal 2024 today. The oil major may see a dip in the December quarter net profit on the back of lower crude realisation and GST provisioning.
It's net profit is likely to fall around 13% year-on-year. Net sales are anticipated to remain flat sequentially. In the second quarter, ONGC recorded a 65% YoY rise in consolidated net profit to Rs 13,734 crore and revenue from operations dropped 13% to Rs 1.47 lakh crore.
Kotak equities: Brokerage models overall crude oil sales volumes of 4.7 mmt, natural gas sales volumes at 4.1 bcm and gross crude price realization of US$82.6/bbl and net oil price realization (post-royalty, windfall tax and cess) of $52/bbl, as lower Brent prices would be partly offset by reduction in windfall taxes.
Nuvama: Broker sees substantial 12 percent on-year EBITDA decline for ONGC due to lower crude and gas prices. Brent prices fell 7 percent annually and 4 percent sequentially in Q3FY24, and APM gas prices dropped by 24 percent to $6.5/mmbtu, as per the Kirit Parikh committee recommendation from April 2023. Anticipated declines include 3 percent on-year and 4 percent on-year in oil and gas production, with a flat on-quarter performance across segments.
JM Financial: The brokerage sees assumed net crude realisation at $72.5 per bbl in line with Brent price less windfall tax of $10 per bbl on domestic crude output. Domestic APM gas realisations to remain flat at $ 6.5/mmbtu. Overall crude sales volume to rise 0.2% QoQ and overall gas sales volume should be up 0.5% QoQ.