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Motilal Oswal: Oil India - Lower Other Expenditure Led Q2 Beat; Oil & Gas Output Continues To Dip   

Motilal Oswal: Oil India - Lower Other Expenditure Led Q2 Beat; Oil & Gas Production Continues To Decline

Oil India Ltd.’s crude oil storge tanks (image: Company website)
Oil India Ltd.’s crude oil storge tanks (image: Company website)

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Motilal Oswal Report

Oil India Ltd.’s oil and gas sales were 14% lower YoY and 5% QoQ, with net realization at 42.7/barrel of oil U.S. dollar, in line with a decline in crude prices.

Lower other expenditure led to the beat on Ebitda, while further cost incurred to control the blowout at the Baghjan field is recorded as an exceptional item.

A lag is seen in global demand recovery for crude oil. Crude oil was expected to recover to approximately 97% of pre-Covid-19 levels over October-December 2020 (as per July 2020 forecasts).

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Motilal Oswal Oil India Q2FY21 Result Update.pdf

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