Shares of Oil and Natural Gas Corp. Ltd (ONGC) have had a stunning recovery in recent months. From its annual closing low around mid-February, the ONGC stock has appreciated as much as 27%. Of course, until February, the shares had declined meaningfully in the previous months back then. Investors have been worried that the state-run upstream oil producer would have to bear some subsidy burden for financial year 2019. As such, the recent increase in share price is some catch-up and thanks to declining fears of subsidy sharing, said analysts. What\u2019s more, ONGC has told analysts that upstream companies are unlikely to share the subsidy burden now. <\/p>\n
The government has created a reasonable budgetary provision of \u20b937,500 crore for the FY20 cooking fuel subsidy, which implies zero burden on upstream PSUs as long as Brent averages under $65 a barrel, said analysts from SBICAP Securities Ltd. While this augurs well, a sharper decline in broader crude prices will mean lower prices realisations.<\/p>\n","protected":false},"excerpt":{"rendered":"
Shares of Oil and Natural Gas Corp. Ltd (ONGC) have had a stunning recovery in recent months. From its annual closing low around mid-February, the ONGC stock has appreciated as much as 27%. Of course, until February, the shares had declined meaningfully in the previous months back then. Investors have been worried that the state-run upstream oil producer would have to bear some subsidy burden for financial year 2019. As such, the recent increase in share price is some catch-up and thanks to declining fears of subsidy sharing, said analysts. What\u2019s more, ONGC has told analysts that upstream companies are […]<\/p>\n","protected":false},"author":40,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[139,130,187],"tags":[],"class_list":["post-277824","post","type-post","status-publish","format-standard","hentry","category-live-mint","category-newspapers","category-oil-gas-live-mint"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/277824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=277824"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/277824\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=277824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=277824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=277824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}