You are here: Home » Markets » News
Business Standard

ONGC hits 5-month high as Q2 profit beats estimates

The stock was up 3% at Rs 190, trading at its highest level since May 11, 2017 on the BSE.

SI Reporter  |  Mumbai 


Oil and Natural Gas Corporation (ONGC) hit a five-month high of Rs 190, up 3% on the BSE in early morning trade after the country’s biggest oil and gas producer, reported a 3.1% increase in second-quarter profit at Rs 5,131 crore, on back of higher oil prices. The net profit in September 2017 quarter (Q2FY18) was better than expected against an average analysts estimates of Rs 4,543 crore.

The stock was trading at its highest level since May 11, 2017. Revenue was up 3.1% at Rs 18,966 crore in Q2FY18 against Rs 18,395 crore in the corresponding quarter of previous fiscal. said oil production was up almost 1% to 6.45 million tonnes in while natural gas output was up 7.7% at 6.25 billion cubic metres. “The company notified 9 discoveries so far in FY’18 out of which 4 discoveries have been made since last press release on 27th July, 2017 (1 new prospect and 3 new pool discoveries). Out of the four discoveries, two discoveries each have been made in offshore blocks and onshore blocks,” said in a press release. The board has approved an interim dividend of 60%, i.e. Rs 3 on each equity share of Rs 5. Antique Stock Broking maintain BUY rating on the stock as marginal EBITDA miss aside, analyst feel earnings otherwise are largely in-line and even as crude price environment has gradually improved to USD 60/bbl (Brent) vs an average of USD 53/bbl YTD, trading at just 8.3x FY19e, the stock is not fully factoring in the same. In addition incremental gas production coupled with a higher gas price (revised upward for Oct'17-Apr'18) should further aid earnings, the brokerage firm said in Q2FY18 result review.

First Published: Mon, October 30 2017. 09:37 IST