Oil, Gas Sector Q2 Preview - GAIL To Standout; Surging Energy Prices To Hurt Margins Across Board: Nirmal Bang
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Nirmal Bang Research Report
We expect our oil and gas coverage universe to show divergent trends in Q2 FY22 earnings, although all companies will see material topline growth on the back of a significant rise in underlying oil prices and volume YoY.
Brent crude oil price is up 68.1% YoY.
Margins are under pressure across the board due to high oil prices and at least five times surge in liquefied natural gas prices YoY, which will particularly hurt city gas distribution margins in industrial/commercial piped natural gas (industrial and commercial).
Amid this tumult, GAIL India Ltd. will stand tall and report massive growth in Ebitda and profit after tax, driven by cyclical upswing in spreads in gas trading, petrochemical and LPG and hydrocarbon.
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