PDVSA and ONGC Videsh Ltd, the overseas investment of arm of state-run explorer ONGC, last year signed a deal allowing the Indian firm to get 17,000 barrels per day of oil to recover dues of about USD 540 million.
The head of the Organization of the Petroleum Exporting Countries was back in Caracas for a second meeting in two months with President Nicolas Maduro whom he lavishly praised for an "inspirational" role in the producers' pact to cut output.
The first month of implementation will be key to understand whether everyone will respect the deal, but according to analysts full compliance is very unlikely.
Pharmaceutical stocks have traditionally been considered defensive safe havens because demand for medicines doesn‘t depend on the economic cycle
ONGC Videsh Ltd has signed a pact with Venezuela's national oil firm to help arrange USD 318 million financing for the San Cristobal project in lieu of the Latin American nation clearing its past dues through supply of crude oil.
Venezuela has agreed to supply crude oil to India on a monthly basis over a two-year period to repay USD 537 million it owes to ONGC Videsh Ltd.
Tata Steel, ONGC, Cipla, Maruti and Lupin were top gainers while Adani Ports, Hero MotoCorp, Bajaj Auto, Bharti and BHEL were losers in the Sensex.
Brent crude futures LCOc1 were trading at USD 46.39 per barrel at 0046 GMT (08:46 p.m. EDT), up 62 cents, or 1.4 percent, from their last settlement. US West Texas Intermediate futures CLc1 were up 63 cents, or 1.5 percent, at USD 43.66 a barrel.
DRL is also working with Venezuela‘s government to increase access to local production market, MV Ramana, DRL‘s Executive VP and Head - Branded Markets, said. Loss of business in the country had impacted the company‘s earnings in first quarter.
Decline in volume growth, particularly in the US market, loss of business in Venezuela, price erosion and delayed launches due to warning letters impacted its performance in April-June quarter.
For the first quarter ended June, Dr Reddy‘s Laboratories missed estimates on all counts. Revenue declined 14 percent to Rs 3,222.5 crore in the quarter ended June 2016 from Rs 3,752.2 crore in same period last year.
US sales in Q1 is estimated at USD 270-276 million from USD 285 million (QoQ), due to pricing pressure in drugs such as Valcyte & Vidaza generic. Also, there may be some pressure in US due to market share loss in Sumatriptan auto-injector and Dacogen generic.
"Citibank, with no warning or communication, says that it is going to close the Central Bank and Bank Of Venezuela account. That is what you call a financial blockade," the embattled president said in televised remarks.
PDVSA - the world's fifth-largest oil company - earned USD 72.2 billion in revenues last year, a sharp drop from 2014's USD 121.9 billion.
If an output freeze were to come through, a bullish price reaction may be seen, says Chris Main, Commodities Strategy Analyst at Citi.
2016 maybe the "year of reckoning" for some OPEC member countries, RBC Capital Markets warned on Tuesday, ahead of the oil cartel's meeting in Vienna this week.
Talking about the Organisation of Petroleum Exporting Countries (OPEC) meeting scheduled for June 2, Amrita Sen expects no "fireworks" from it and says that there is a slim chance that all members would agree on a production level.
Indian officials say they have proposed an oil-for-drugs barter plan with cash-strapped Venezuela to recoup millions of dollars in payments owed to some of India's largest pharmaceutical companies.
India is the 12th largest foreign holder of the US government securities with exposure to the tune of $118.9 billion as on March-end.
Disappointing performance in the topline and ongoing currency issues have hurt Q4 numbers of the pharma company," says Mayuresh Joshi of Angel Broking.
Dr Reddy's Lab fourth quarter earnings were hurt by one-time Venezuela write-off. The drug major's net profit fell 86 percent at Rs 74.6 crore in January-March quarter from Rs 518.9 crore. Its total income also slipped to Rs 3756.2 crore against Rs 3870.4 crore in year-ago period.
EBITDA in Q4 may jump to Rs 388.3 crore against Rs 281.4 crore whil operating profit margin may stand at 20.7 percent from 16 percent year-on-year.
During the period, EBITDA may grow 11.2 percent to Rs 897 crore versus Rs 806.4 crore while margins may stand at 23 percent versus 21 percent.
Two leading pharma companies, Dr Reddy's and Glenmark, are slated to post fourth-quarter earnings today and chances are both firms may disappoint, says Surajit Pal, Pharma Analyst at Prabhudas Lilladher.
OPEC member Venezuela and top non-OPEC producer Russia had been the main proponents of the output freeze deal, in the making since February, until it collapsed on Sunday in Doha after Riyadh said it would not sign unless Iran took part.