ICICI Securities: ONGC Q1 Review - Remains In The Back Despite Low Prices On Steep Opex Fall
Emissions rise from chimneys at the Oil and Natural Gas Corporation Ltd. (ONGC) Uran plant in Uran, Maharashtra, India. (Photographer: Dhiraj Singh/Bloomberg)

ICICI Securities: ONGC Q1 Review - Remains In The Back Despite Low Prices On Steep Opex Fall

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Oil and Natural Gas Corporation Ltd.’s Q1 FY21 standalone and consolidated earning per share was down 92-98% YoY, hit by fall in oil and gas realisation, sales volumes and other income.

What is encouraging is ONGC remained in the black despite low oil and gas prices, which was due to 40% (11.3/ barrel of oil equivalent U.S. dollar) YoY decline in opex.

We believe oil is out of the woods and will gradually rise.

Recent indications from Government of India, that it is unlikely to divest its stake in public sector undertakings like ONGC, are encouraging as divestment via exchange-traded funds has hurt ONGC’s stock performance.

Gas price reforms or deregulation could be a trigger.

Click on the attachment to read the full report:

ICICI Securities ONGC Q1FY21 Results Update.pdf

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