{"id":294995,"date":"2019-10-04T12:07:34","date_gmt":"2019-10-04T06:37:34","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=294995"},"modified":"2019-10-04T12:07:34","modified_gmt":"2019-10-04T06:37:34","slug":"natural-gas-price-cut-to-hurt-ongc-earnings-by-rs-1460-crore-moodys","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/natural-gas-price-cut-to-hurt-ongc-earnings-by-rs-1460-crore-moodys\/","title":{"rendered":"Natural gas price cut to hurt ONGC earnings by Rs 1,460 crore: Moody\u2019s"},"content":{"rendered":"<p>The recent reduction of gas prices by the central government would lead to state-owned Oil and Natural Gas Corporation (ONGC) lose Rs 1,460 crore revenue from its gas business, rating agency Moody\u2019s said on Thursday. The decline is equal to 0.3% of ONGC\u2019s expected consolidated revenue and around 2% of consolidated earnings before interest, tax, depreciation and amortisation for FY20.<\/p>\n<p>On September 30, the government cut domestic natural gas prices by 12.5% to $3.23 per million British thermal units (mmBtu) \u2014 the first reduction in gas prices in the country since April 2017. Ceiling price for gas to be produced from difficult fields has also been cut 9.5% to $8.43\/mmBtu. Terming the price reductions as \u201ccredit negative\u201d for ONGC, Moody\u2019s, however, said that it \u201cwill have a limited effect on ONGC\u2019s metrics for FY20\u201d since its gas business is small compared with its total upstream operations. In FY19, the gas business contributed 17% revenue to ONGC\u2019s upstream business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The recent reduction of gas prices by the central government would lead to state-owned Oil and Natural Gas Corporation (ONGC) lose Rs 1,460 crore revenue from its gas business, rating agency Moody\u2019s said on Thursday. The decline is equal to 0.3% of ONGC\u2019s expected consolidated revenue and around 2% of consolidated earnings before interest, tax, depreciation and amortisation for FY20. On September 30, the government cut domestic natural gas prices by 12.5% to $3.23 per million British thermal units (mmBtu) \u2014 the first reduction in gas prices in the country since April 2017. Ceiling price for gas to be produced [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,195,138],"tags":[],"class_list":["post-294995","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-oil-gas-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/294995","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\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=294995"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/294995\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=294995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=294995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=294995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}