Limited gains for ONGC as coronavirus crisis, oil price spat continue

Analysts feel company's stock is already discounting crude price recovering to $48/barrel.

State-owned ONGC gained more than 34 per cent from March lows to correct on Wednesday. As crude oil prices improved from $19 a barrel in April to around $40, sentiment for ONGC improved but the company’s March quarter performance failed to impress the investors.

The lower oil and gas realisations, sharp jump in operating expenses, higher than expected DD&A (depletions, depreciation & amortization) expenses and impairments caused by the coronavirus outbreak hurt the company’s earnings.

The company’s crude realisations at $49 a barrel during the March quarter were 20.9 per cent lower year-on-year  ($61.93 a barrel during year-ago  quarter). The gas prices