Oil And Natural Gas Corporation Ltd. share price target

Oil volume saw a dip of 3% YoY to 6.2bcm, while gas production volume increased 2.2% to 6.1bcm. Net oil realization improved to US$66.7/bbl vs US$54.9//bbl, in line with our estimate. We are keeping oil production growth flattish at 25.5mmt & 4% growth in gas to 25.5bcm against company's guidance of 25.9mmt/25.5bcm. We expect its net oil realization to rise to US$60/bbl for FY19/FY20E from US$57.3 in FY18. We cut TP to Rs214 from Rs227. Maintain BUY. Key Highlights and Investment Rationale Higher expenses, dry well write-offs hurt PAT growth...

Our TP is Rs 279/sh (10x Mar-20E standalone + OVL EPS and Rs 41 from investments). Maintain BUY. ONGCs 4QFY18 revenue was at Rs 239.7bn (+ 10.4% YoY), led by higher oil realisations at Rs 4,290/bbl (+16.6%), and increase in gas sales volumes at 4.8bcm (+3.5% YoY). Lower oil sales volumes (-3.8% YoY) partially offset the growth. EBITDA stood at Rs 113.8bn up 69.2% YoY. However, higher exploration write-offs (Rs 30.4bn, +39% YoY) dragged PAT to Rs 59.16bn (+36.3% YoY).

ICICI Securities Ltd | Retail Equity Research ONGC declared its Q4FY18 results that were below our estimates on the operational front. Revenues increased 10.4% YoY to | 23969.8 crore and came in largely in line with our estimates. The net realisation was at US$66.7/bbl, in line with our estimates EBITDA during the quarter came in at | 11382.2 crore, below our estimates of | 12937.1 crore. Lower EBITDA was mainly on account...

30 May 2018 ONGCs reported EBITDA of INR114b (+69% YoY, -9% QoQ) was below our estimate of INR131b, led by marginally lower realization and higher opex. Other expenditure was higher at USD9.8/boe in 4QFY18 v/s USD6.6/boe in 4QFY17 and USD7.0/boe in 3QFY18, led by higher work over costs, water injection costs, transportation costs, and repair & maintenance cost. PAT of INR59b (+36% YoY, +18% QoQ) was slightly ahead of our estimate of INR57b, led by higher other income of INR37b (est. of INR14b; -17% YoY, +231% QoQ), despite higher interest cost of INR5.9b (est. of INR2.5b; +86% YoY, +92% QoQ). Net realization grew 21% YoY (+10% QoQ) to USD66.7/bbl in 4QFY18. Subsidy sharing was nil; we model nil subsidy sharing for FY19 and FY20 as well. Oil sales declined 3.8% YoY (-0.

ICICI Securities Ltd | Retail Equity Research ONGC declared its Q3FY18 results, which were below our estimates on the profitability front. Revenues increased 14.9% YoY to | 22995.9 crore and were above our estimate of | 21916.3 crore. Net realisation was at US$60.6/bbl, slightly lower than our estimate of US$61.1/bbl EBITDA during the quarter increased 20.8% YoY to | 12524.7 crore, above our estimate of | 12119.1 crore However, reported PAT | 5014.7 crore, which increased 15.2% YoY,...

ONGC's Q3FY18 reported a strong operating performance led by higher gas volume and oil realization. However due to higher DDA and dry well costs, net profit took a significant hit, below our estimates. Oil volume saw a marginal dip of 1% YoY to 6.3bcm, while gas production volume continued its uptrend and grew 4% Y to 6.3bcm. EBITDA increased a robust 20.8% YoY to Rs125 bn but due to 25% rise in DDA, PAT grew just 15% to Rs50 bn....

Topline rose 15% as crude oil realisation (nominated) in rupee terms increased 12.2% to Rs 3922 per barrel. In dollar terms ONGC crude oil realisation (nominated) was up 16.9% to USD 60.58 per barrel in Q3FY'18. Gas price was 15.6% higher in Q3FY18 to $ 2.89 per mmbtu compared to $ 2.5 per mmbtu in Q3FY17 Crude oil production fell 1% in Q3FY18 to 6.34 MMT compared to Q3FY17. This includes 5.196 MMT from domestic operations and 0.778 MMT from JVs and 0.365 MMT of condensate. ONGC gas production rose 4.2% to 6.277 BCM in Q3FY'18. This includes 5.997 BCM from domestic...

Our TP is Rs 290/sh (10x Dec-19E standalone + OVL EPS and Rs20 from investments). Maintain BUY. ONGCs 3QFY18 revenue was at Rs 229.96bn (+14.9% YoY), led by higher oil realisations at Rs3,922/bbl (+12.2%), increase in gas sales volumes at 5bcm (+7.3% YoY), and higher gas sales realisation at USD 2.89/mmbtu (+8% YoY). EBITDA stood at Rs 125.25bn up 20.8% YoY and up 6% QoQ.

ICICI Securities Ltd | Retail Equity Research ONGC has officially announced the acquisition of government's 51.1% stake in HPCL at a price of | 474 per share. The total outgo on the part of ONGC will be | 36915 crore The transfer of shares will be on cash basis with no open offer to minority shareholders as there is no change in ownership. ONGC will use a combination of cash and debt and the company also has the approvals to sell its stake in IOC and GAIL to fund the acquisition. In our opinion, the acquisition will be mainly through...

What's the deal: After a long wait and one of the biggest consolidations in the industry, ONGC agrees to acquire the complete 51.11% Government's stake in HPCL at a total consideration of Rs369.16 bn (Rs473.97/share, 14% premium to cmp). The deal is expected to be over by end of this month. HPCL would continue to trade as an...