MOSL: ONGC (Buy)-EBITDA in line with est., Gas production disappointing
ONGC: EBITDA in line with est., Gas production disappointing
(ONGC IN, Mkt Cap USD23.7b, CMP INR136, TP INR190, 40% Upside, Buy)
2QFY20 net sales were down 12% YoY to INR245b (in-line), primarily due to lower crude oil realization at USD60.3/bbl (v/s USD73.1/bbl in 2QFY19).
- EBIDTA was down 16% YoY to INR133b (in-line). During the quarter, other expenditure was at USD6.4/boe (v/s USD7.1/boe in 2QFY19).
- DD&A was at USD10/bbl in 2QFY20 v/s 7.6/bbl in 2QFY19. Dry well cost was 21% higher YoY due to write-backs, majorly from Mumbai and KG offshores.
- PBT was 2% higher than est. at INR90.4b (-29% YoY), with higher other income offsetting higher depreciation and interest cost. Company is continuing with the old tax rate; for 2QFY20, tax rate stood at 30.7% (v/s est. 22.5%). Higher tax led to PAT miss of 8% at INR63b (-24% YoY).
Oil and Natural Gas is engaged in exploration, development and production of crude oil and natural gas. Co.'s business also includes niche areas like -processing of crude oil & natural gas; oil field services, transportation of the oil and natural gas, production of value added products like - LPG, Naphtha, Superior Kerosine Oil, ATF, C2-C3, etc., Refinery, Petrochemicals, Power, unconventional and alternate sources of energy. Co.'s five international locations as per oil & gas production are in Vietnam, Russia, Venezuela, Sudan, South Sudan, and Colombia. Co.'s five international locations as per oil & gas reserves are in Russia, Venezuela, Sudan, South Sudan, Myanmar and Vietnam.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.