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Oil, Gas Sector Q2 Preview - GAIL To Standout; Surging Energy Prices To Hurt Margins Across Board: Nirmal Bang

Oil, Gas Sector Q2 Preview - GAIL To Standout; Surging Energy Prices To Hurt Margins Across Board: Nirmal Bang



A Bharat Petroleum Corp. refinery stands in the Mahul area of Mumbai (Photographer: Dhiraj Singh/Bloomberg)
A Bharat Petroleum Corp. refinery stands in the Mahul area of Mumbai (Photographer: Dhiraj Singh/Bloomberg)

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

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.

Click on the attachment to read the full report:

Nirmal Bang Oil and Gas Sector- Q2FY22 Result Preview-7 October 2021.pdf

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