{"id":435653,"date":"2021-09-13T12:07:38","date_gmt":"2021-09-13T06:37:38","guid":{"rendered":"https:\/\/infralive.com\/web\/?p=435653"},"modified":"2021-09-13T13:10:18","modified_gmt":"2021-09-13T07:40:18","slug":"oil-gas-operating-environment-has-got-better","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/oil-gas-operating-environment-has-got-better\/","title":{"rendered":"Oil &amp; Gas: Operating environment has got better"},"content":{"rendered":"<p>We expect OMCs to benefit from (i) the recent improvement in auto fuel marketing margins amid range-bound crude oil prices; (ii) gradual recovery in benchmark refining margins driven by anticipated recovery in global demand; and (iii) a rebound in domestic petroleum consumption post the second Covid wave. We find the valuations inexpensive for HPCL and IOCL at around 5X EV\/Ebitda and BPCL\u2019s at 6.2X EV\/Ebitda reflecting a modest premium for privatisation. <\/p>\n<p>Auto fuel margins up in recent months <\/p>\n<p>Our calculations suggest that auto fuel marketing margins improved in the recent months amid a moderation in crude prices with OMCs reducing retail prices at a modest pace. Our estimate of diesel marketing margins increased to Rs 5.5\/litre in August 2021 and further to Rs 6.6\/litre currently from Rs 2.5\/litre in April 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We expect OMCs to benefit from (i) the recent improvement in auto fuel marketing margins amid range-bound crude oil prices; (ii) gradual recovery in benchmark refining margins driven by anticipated recovery in global demand; and (iii) a rebound in domestic petroleum consumption post the second Covid wave. We find the valuations inexpensive for HPCL and IOCL at around 5X EV\/Ebitda and BPCL\u2019s at 6.2X EV\/Ebitda reflecting a modest premium for privatisation. Auto fuel margins up in recent months Our calculations suggest that auto fuel marketing margins improved in the recent months amid a moderation in crude prices with OMCs reducing [&hellip;]<\/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":[130,195,138],"tags":[],"class_list":["post-435653","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\/435653","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=435653"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/435653\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=435653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=435653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=435653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}