“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,” ONGC 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.