 "ONGC hits 5-month high as Q2 profit beats estimates")
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.
ONGC said oil production was up almost 1% to 6.45 million tonnes in Q2 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,” 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.
“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.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%