Oil And Natural Gas Corporation Ltd. share price target

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...

Gas production growth over the near term is expected to be driven by the Daman, C26, S1/Vashistha and Basse in fields. Gas produced from S1/Vashistha is likely to command premium pricing. Commencement of production from the KG-DWN-98/2 block could see some delay from the earlier planned mid-2019. A total of 34 wells need to be drilled.A total of three rigs are expected to be deployed, with each rig drilling one well in three months. ONGC had recently acquired a stake in GSPC's KG basin block. Rig rates for this block are being renegotiated, post which the fifth well would be drilled by the company. A plan for further development would be charted after getting data from the fifth well. We expect further delays in the project

Production growth of 5%/9% in FY18/19 led by gas volume growth of 9%/17%. With H1FY18 volume growth already at 5%, ONGC is confident of achieving its FY18 volume guidance; Opex will decline by 10-15% due to ~30% decline in dayrates of rigs/ OSVs though partially offset by higher manpower costs

Topline rose 3% as net realisation of crude oil (nominated) in rupee terms increased 2.6% to Rs 3293 per barrel while crude oil production rose 0.9% at 6.45 MMT. This includes 5.305 MMT from domestic operations and 0.7775 MMT from JVs and 0.37 MMT of condensate. ONGC gas production rose 7.7% to 6.255 BCM in Q2FY'18. This includes 5.958 BCM from domestic operations and 0.297 BCM from JVs. In dollar terms ONGC gross crude oil realisation (nominated) was up 6.9% to USD 51.22 per...

Our TP is Rs 209/sh (10x Sep-19E standalone + OVL EPS and Rs21 from investments). Maintain NEUTRAL. ONGC's 2QFY18 EBITDA was muted at Rs 104.7bn (+8.5% YoY), led by higher oil realisations (+2.7%), increase in gas production from domestic fields (+8% YoY), and lower opex. However, these factors are offset by lower gas realisations (-19% YoY). Additionally, higher exploration write-offs (Rs 13.3bn, +143.5% YoY), depreciation, depletion and impairment costs dragged PAT to Rs 51.3bn (+3%). ONGCs 2QFY18 EBITDA was muted at Rs 104.7bn (+8.5% YoY), led by higher oil realisations (+2.7%), increase in gas production from domestic fields (+8% YoY), and lower opex. However, these factors are offset by lower gas realisations (-19% YoY). Additionally, higher exploration write-offs (Rs 13.3bn, +143.5% YoY), depreciation, depletion and impairment costs dragged PAT to Rs 51.3bn (+3%).

ONGC's Q2FY18 results came in-line with estimates as higher than expected dry well write-offs was offset by more than expected other income. Oil/gas production volume continued to keep uptrend and grew 1%/8% YoY to 6.5mmt/6.3bcm. The company has guided for a robust 4.8%/27% oil/gas volume growth in FY19 over FY17 to 26.2mmt/29.5bcm. Conservatively, we are keeping oil production volume stable while raising gas volume by 3%/8% during FY18/FY19 to 25.5mmt for oil and 25.3bcm/27.3bcm for...

ICICI Securities Ltd | Retail Equity Research ONGC declared its Q2FY18 results, which were above our estimates on the profitability front. Revenues increased 3.1% YoY to | 18964.9 crore and came in line with our estimate of | 19047.8 crore. The net...

ONGCs EBITDA at Rs 99 bn was in line with our/Street estimates. PAT at Rs 39 bn was lower (vs. expectation of Rs 44 bn) due to higher tax rate (35% vs. ~30% normal) and lower other income.