ONGC\u2019s Q2FY20 standalone earnings rose 6% q-o-q to Rs 6,300 crore, missing JEFe by 13% on higher taxes, forex losses and DD&A. Ebitda was 3% lighter too, though, on lower product sales but we are more disappointed by the soft consolidated earnings that were 16% lower than standalone. The downstream ventures (HPCL, MRPL, OPAL, OMPL) were expectedly weak but so was OVL. We cut FY20-22E EPS by 8-12%, largely driven by arms & JVs, but keep our \u2018buy\u2019 noting ~7.5x P\/E & ~5.5% yield. ONGC\u2019s standalone Q2FY20 net inline with consensus but 13% lower than JEFe despite higher other income. Higher tax rates (37% excluding dividend) hurt as did higher dry-well writeoffs (Rs 1,420 crore), a Rs 450 crore impairment and Rs 400 crore in forex losses with the AS-116 impact also wider at Rs 200 crore.<\/p>\n
Yet, Ebitda (Rs 13,300 crore) was also 3% lighter falling 9% q-o-q despite lower than estimated operating expenses (flat y-o-y, $9.3\/boe) driven largely lower LPG and C2\/C3 volumes with oil & gas revenue inline. Indeed, the gap between oil sales and production narrowed to 5.4% with gas sales a tad better too as were oil realisations for its own assets.<\/p>\n","protected":false},"excerpt":{"rendered":"
ONGC\u2019s Q2FY20 standalone earnings rose 6% q-o-q to Rs 6,300 crore, missing JEFe by 13% on higher taxes, forex losses and DD&A. Ebitda was 3% lighter too, though, on lower product sales but we are more disappointed by the soft consolidated earnings that were 16% lower than standalone. The downstream ventures (HPCL, MRPL, OPAL, OMPL) were expectedly weak but so was OVL. We cut FY20-22E EPS by 8-12%, largely driven by arms & JVs, but keep our \u2018buy\u2019 noting ~7.5x P\/E & ~5.5% yield. ONGC\u2019s standalone Q2FY20 net inline with consensus but 13% lower than JEFe despite higher other income. […]<\/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-301233","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\/301233","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=301233"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/301233\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=301233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=301233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=301233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}