Curbs, lower crude prices put oil companies on a slippery slope in Q4
The forthcoming March quarter (Q4) results season presents unique challenges in forecasting what numbers would look like. Prima facie, barring a few firms involved in selling essential items, most companies will record a terrible quarter.
Take oil firms, for instance. State-run oil producers Oil and Natural Gas Corp. Ltd and Oil India Ltd would see their price realizations come under pressure as oil prices fell sharply during the quarter. Analysts have assumed net crude oil price realizations for both companies to register a double-digit percentage decline year-on-year as well as on a sequential basis. Additionally, production volumes are expected to be lower.
State-run oil marketing companies (OMCs) have not been spared either. OMCs include Bharat Petroleum Corp. Ltd, Hindustan Petroleum Corp. Ltd and Indian Oil Corp. Ltd (IOC).
