ONGC Q3 Outcomes Evaluation – Sturdy Steerage For Manufacturing Development: Motilal Oswal

Oil and Pure Gasoline Company Ltd. reported Ebitda of Rs 204.1 billion (up 28% YoY, up 9% QoQ), consistent with our estimates. Oil realisation stood at $76.7/barrel of oil (after taking into impact Q3 windfall tax).

Crude oil and gasoline gross sales stood at 4.7 million metric tonne and 4.2 billion cubic metre, respectively, each consistent with our estimates.

First oil from the Krishna-Godavari basin is predicted in Might/June 2023. Incremental manufacturing steerage stands at 1.9 mmt of oil and a couple of.8 bcm of gasoline in FY24 and a couple of.2 mmt and three.8 bcm in FY25.

On the peak, incremental manufacturing may very well be 45 thousand barrels of oil per day and 12 million metric customary cubic metre per day in FY25.

The windfall tax stood at ~Rs 5,050/million tonne in Feb-23 until date from Rs 23, 250/ mt in July 2022, consistent with the decline in oil costs. Nevertheless, with no finish to the windfall tax in sight, we’ve already prolonged its impact to This fall FY23, FY24 and FY25 in our word ‘prime decide 2023’.

We have now not modified our brent assumptions for FY24/FY25 ($90/bbl), with internet realization at $70/bbl (after taking into impact the windfall taxes).

With the in-line Q3 efficiency, the standalone enterprise doesn’t warrant a change in our estimates for FY23/FY24/FY25.