Oil And Natural Gas Corporation Ltd. share price target

While production volume of crude oil increased marginally by 0.8% YoY in Q4FY17, gas production increased at a much faster pace of 15.6% YoY. Reported EBITDA increased by 6.5% YoY in Q4FY17 (below expectation) due to higher statutory levies and increased staff cost. While crude oil production is likely to remain flat, we project gas volume to increase by 10% CAGR over FY17-19E driven by production improvement in offshore fields. Hence, we estimate net revenue and profit to grow at a CAGR of 11% and...

ONGC's adj. PAT at Rs59 bn (in line) was supported by higher other income at Rs 45 bn.

We are revising our TP slightly downwards to Rs218 from Rs232. Maintain BUY. Result Highlights and Investment Rationale Better oil realization and gas volume growth augmented revenue ONGC's revenue was up 32.5% YoY to Rs217 bn on the back of higher gas volume and better oil realization offset by lower gas price. Oil production volume was flattish at 6.4mmt while gas volume increased 13.4% to 5.9bcm. Net oil realization grew 57% YoY to US$54.9/bbl while...

Revenue grew by 8.49% to Rs. 21714.02 Cr in Q4FY17 when compared to the previous quarter.

ICICI Securities Ltd | Retail Equity Research ONGC declared its Q3FY17 results, which were above our estimates on the topline front. Revenues, which increased 8.2% YoY to | 20014 crore were above our estimate of | 18845.1 crore due to higher gas volumes and higher net realisation. Reported PAT increased 238.5% YoY at | 4352.3 crore but came in below our estimate of | 4660.8 crore due to higher than estimated exploratory costs write offs The net realisation came in higher at US$51.8/bbl than estimated...

ONGC's Q3FY17revenue and EBITDA came in line with expectation while PAT was below expectation on the back of higher than expected dry well costs and lower other income. Revenue increased 8% YoY to Rs200 bn, EBITDA grew 19% to Rs104 bn while adjusted PAT increased 12.2% YoY to Rs44 bn. Oil production volume was down 1.9% YoY to 6.4mmt while gas volume increased 4.4% to 6bcm. The company's dry well write off came at Rs13.6 bn in Q3FY17 vs Rs7 bn in Q3FY16 and Rs5.5 bn in Q2FY17, which we expect to subside in coming quarters. We expect ONGC to benefit significantly from higher crude oil price and expected cut in Cess....

ONGCs 3QFY17 EBITDA was muted at Rs 103bn ( 18% YoY) led by higher oil realisation ( 20%) and lower opex. However, higher exploration write-offs (Rs 14bn, 95% YoY) dragged PAT to Rs 44bn ( 7%).

ONGCs 2QFY17 EBITDA was muted at Rs 96bn (-9% YoY) led by lower oil volumes (-5%) and lower gas realisation (-34%). However, lower exploration write-offs (Rs 12bn fall YoY) boosted PAT to Rs 50bn ( 6%).

ICICI Securities Ltd | Retail Equity Research ONGC declared its Q2FY17 results, which were above our estimates. The topline declined 11% YoY to | 18395 crore due to a fall in the crude oil prices YoY but came in above our estimate of | 17981 crore due to higher-than-expected sales and higher net realisation. The reported PAT remained flat YoY at | 4974.9 crore and came in above our estimate of | 4342.7 crore. Lower than estimated exploratory costs expense contributed to higher PAT...

ONGC declared its Q1FY17 results, which were above our estimates on the profitability front. The topline declined 22.1% YoY to | 17784.8 crore and came in above our estimate of | 18296.3 crore. The reported PAT declined 25% YoY to | 4232.5 crore and came in above our estimate of | 3306.9 crore, mainly due to lower than estimated operating expenses • The net realisation came in marginally higher at $46.1/bbl than estimated $45.8/bbl. There was nil subsidy during the quarter.

ICICI Securities Limited have assumed the above subsidy sharing mechanism for the long term to arrive at a target price of | 240/share with EPS of | 18.7 and | 19.1 for FY17E and FY18E, respectively assuming Brent crude price at US$45/bbl. However, if Brent crude price increases to US$ 50/bbl for the remaining period of FY17E and FY18E, ONGC’s target price would change to | 264/share. They have a HOLD rating on the stock at the current levels.