Motilal Oswal: ONGC - Volumes Back To Normal Levels; KG Basin Production Faces Delay

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 and Natural Gas Corporation Ltd.’s Q1 FY21 oil and gas sales were in line with estimates along with net crude oil price realization, thus resulting in in-line revenues.However, lower other expenditure led to an Ebitda beat during the quarter. Offtake of crude oil by refineries from ONGC was not affected.However, there was a reduction in gas production due to less off-take by some customers, which has now been restored to normal levels.Production guidance in FY21 for oil stood at approximately 22.7 million metric tonne and for gas at approximately 24.9 billion cubic metres.OPEC plus managed production cuts well (in line with demand), as various economies globally came out of the lockdowns.Thus, crude oil prices hovered around approximately 45/barrel of oil U.S. dollar over the last two months.Starting August 2020, OPEC plus also eased production cuts by 2 million barrels of oil per day (to 7.7 million barrels of oil per day).Global demand is expected to reach approximately 97% of pre-Covid-19 levels in the next quarter (October-December 2020).We have built in crude oil price forecast of approximately 45/bbl U.S. dollar for H2 FY21 and we expect prices to remain stable around current levels in the medium term..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: ONGC - Volumes Back To Normal Levels; KG Basin Production Faces Delay

Motilal Oswal: ONGC - Volumes Back To Normal Levels; KG Basin Production Faces Delay

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