MOSL: OIL INDIA (Buy)-Characterized by higher gas revenue, lower tax rate, record-high quarterly PAT
Oil India: Characterized by higher gas revenue, lower tax rate, record-high quarterly PAT
(OINL IN, Mkt Cap USD2.7b, CMP INR170, TP INR239, 41% Upside, Buy)
- Revenue increased 23% YoY (-6% QoQ) to INR35.1b, marginally ahead of our estimate of INR34.5b. Crude oil sales/production ratio stood at 97%, while realization was at USD66.7/bbl (in line with our estimate of USD66.8/bbl; +12% YoY, -9% QoQ). EBITDA grew 24% YoY (+3% QoQ) to INR15.2b (16% ahead of our estimate of INR13.1b), as other expenditure came in lower at USD6.4/boe (our estimate: USD8.0; 3QFY18: USD6.0; 2QFY19: USD9.4) due to (a) reduced provisions of ~INR186m (2QFY19: INR1.2b) and (b) lower insurance, rent and sundry expenditure of INR1.5b (2QFY19: INR2.7b). PAT of INR12.3b (+75% YoY, +43% QoQ) came in above our estimate of INR8.5b due to higher other income of INR6.0b (our estimate: INR4b; ~3x YoY, ~2x QoQ).
- Production of crude oil stood at 0.84mmt (-3% YoY, -2% QoQ) and of gas at 0.7bcm (-3% YoY, flat QoQ). Total production declined 3% YoY (-1% QoQ) to 1.53mmtoe. Sales of oil stood at 0.81mmt (-2% YoY and QoQ); gas at 0.65bcm (+7% YoY, flat QoQ). Total sales were up 2% YoY (-1% QoQ) at 1.46mmtoe.
Oil India is a fully integrated upstream petroleum company based in India. Co. is engaged in the exploration, development and production of crude oil and natural gas, transportation of crude oil and production of Liquid Petroleum Gas (LPG). Co. also provides various Exploration & Production (E&P) related services and holds an interest in the Numaligarh Refinery. Co. conducts the majority of its activities in North East India as well as Rajasthan. Additionally, Co.'s is active in Ganga Valley and Mahanadi and has participating interests in Mahanadi Offshore, Mumbai Deepwater, Krishna Godavari Deepwater, etc. as well as various overseas projects in Libya, Gabon, U.S.A., Nigeria and Sudan.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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