MOSL: OIL INDIA (Buy)-Lower other expenditure; total sales remain flat
OIL INDIA: Lower other expenditure; total sales remain flat
(OINL IN, Mkt Cap USD2.3b, CMP INR150, TP INR215, 43% Upside, Buy)
- 1QFY20 revenue was flat YoY at INR33.7b (in line with est.). EBITDA was 6% higher than est. at INR13.5b (-4% YoY), due to lower total expenditure at USD7.1/boe (v/s USD8.8/boe in 1QFY19 and USD8.9/boe in 4QFY19). PAT was 11% lower YoY at INR6.2b (v/s gain of INR7.0b in 1QFY19 and loss of INR2.0b in 4QFY19, due to one-off exceptional item).
- Depreciation cost came in at USD4.9/boe (v/s USD4.4/boe in 1QFY19 and USD5.5/boe in 4QFY19).
- Production of crude oil was 4% lower YoY at 0.81mmt, while that of gas was 6% higher at 0.71bcm. Total production was at 1.53mmtoe (v/s 1.51mmtoe in 1QFY19).
- Sales of oil was 2% lower YoY at 0.8mmt, while that of gas was 3% higher YoY at 0.61bcm. Total sales were flat YoY at 1.41mmtoe.
- Net realization for the quarter stood at USD66.3/bbl (v/s USD72/bbl in 1QFY19), with no subsidy burden during the quarter. This was majorly due to volatile crude prices during 1QFY20.
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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