ONGC up 3% post December quarter results
Oil and Natural Gas Corporation (ONGC) was trading 3% higher at Rs 195 on BSE in early morning trade after reporting a strong operating performance led by higher gas volume and oil realization for the quarter ended December 2017 (Q3FY18). The company’s natural gas production saw an increase of 4.2% during the quarter under review to 6.277 billion cubic meter (BCM) as against 6.025 bcm during the same quarter in 2016. ONGC posted a 15.2% year on year (YoY) rise in net profit for the third quarter of the financial year 2017-18 to Rs 50.15 billion, compared to Rs 43.52 billion last year. “Company’s revenue increased 14.9% YoY to Rs 230 billion owing to 17% rise in oil realisation to US$ 60.6/bbl and 4.2% jump in gas production volume to 6.3 bcm, partially offset by 1% drop in oil production volume to 6.3 mmt.
Also, gas realization increased 2% YoY to Rs7.6/scm,” analyst at IDBI Capital said in result review. The company guided for a robust 4.8%/27% oil/gas volume growth in FY19 over FY17 to 26.2mmt/29.5bcm. Also, it expects Vashishta to start production from end Mar’18 which would improve gas production by 4mmscmd, the brokerage said with maintain a ‘buy’ rating on the stock.