Motilal Oswal: Oil India Q1 Review - Expect Marginal Production Decline In FY21

"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..Motilal Oswal Report.Oil India Ltd.’s oil and gas sales were approximately 7% lower YoY and flattish QoQ, with net realization at 30.4/barrel of oil U.S. dollar, in line with decline in crude prices.Expenditure incurred to control the blowout at the Baghjan field is recorded as an exceptional item. Crude prices have moved up the trough and stabilized at 42–45/bbl U.S. dollar over the last couple of weeks.We believe prices would stabilize at around 40–50/bbl U.S. dollar as OPEC plus production cuts continue, further aided by demand revival.We expect no incremental change in production volumes for both oil and gas in the near term.The company stated it intends to add gas production of approximately 5 million metric standard cubic meter per day (mmscmd) from 2024-25 (on 7.5 mmscmd currently), while arresting decline in oil production.We model-in crude oil prices of 40/bbl U.S. dollar / 50/bbl U.S. dollar for FY21/FY22 and highlight that a change of 1/bbl U.S. dollar in oil price impacts Ebitda by 4%. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Motilal Oswal: Oil India Q1 Review - Expect Marginal Production Decline In FY21