Because to fewer collections, ONGC can declare a reduction in Q3 net profit

Because to fewer collections, ONGC can declare a reduction in Q3 net profit

Seven analysts' projections place ONGC's net profit at Rs 9,115 crore, down 14% year over year and 8% quarter over quarter.

Seven experts have projected that ONGC would report net profit of Rs 9,115 crore, a 14% year-over-year and 8% quarter-over-quarter decline.

because of the low crude oil realization and the GST on royalty that is provided to the public oil marketing business, Oil and Natural Gas Corporation Limited (ONGC).The net profit for the December quarter could drop. On February 10, the business will release its financial results.

Seven experts have estimated that ONGC would report a net profit of Rs 9,115 crore, a 14% year-over-year and 8% quarter-over-quarter decline. While EBITDA is predicted to fall 10% YoY and be constant sequentially, net sales are predicted to remain flat and decline 9% YoY to Rs 34,631 crore.

In comparison to the previous quarter, ONGC is expected to experience a 0.9 percent EBITDA loss due to a 0.5% reduction in crude oil production, a 1.4% decline in gas production, and a 2% decline in net crude oil realization. CLSA anticipates an increase in recoverable costs of 18%, which may result in a quarterly decrease in net profit of 12% and an annual decline of 19%.

According to Kotak, sales of natural gas will increase by 1% to 4.1 billion cubic meters, but they will decrease by 3% from the previous year. Sales of crude oil are expected to increase by 1% to 4.7 million metric tons. While net realizations—which take into account taxes and royalties—are predicted to increase by 3% to $52 per barrel, the company's gross crude oil realizations are predicted to decrease by 3% to $82.6 per barrel. This is because lower-than-anticipated taxes are projected to drive up Brent prices. has dropped.

For ONGC, Nuvama projects a sharp 13% drop in yearly EBITDA as a result of the low price of gas and crude oil. In Q3FY24, Brent prices dropped 7% yearly and 4% sequentially, while APM gas prices dropped 24% to $6.5/mmbtu in accordance with the April 2023 proposal of the Kirit Parikh committee. A 3 percent yearly drop and a 4 percent decline in the current year are included in the anticipated reduction. Every segment of the oil and gas production had a quarter-over-quarter decline in performance.