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    HomeNewsBusinessEarningsOther income to boost Oil & Gas PAT by 15% yoy: Angel

    Other income to boost Oil & Gas PAT by 15% yoy: Angel

    Angel Broking has come out with its earnings estimates on oil and gas estate sector for December quarter FY13. According to the research firm, operating profit is expected to decrease by 0.8% yoy mainly due to decline in production from the KG D6 block. Nevertheless, PAT is expected to increase by 15.0% yoy mainly due to increase in other income.

    January 05, 2013 / 16:58 IST
       
       
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      Angel Broking has come out with its earnings estimates on oil and gas estate sector for December quarter FY13. According to the research firm, operating profit is expected to decrease by 0.8% yoy mainly due to decline in production from the KG D6 block. Nevertheless, PAT is expected to increase by 15.0% yoy mainly due to increase in other income.

      Oil & Gas - During 3QFY2013, the price of Brent crude oil remained in the range of US$108-117. Overall, average Brent crude oil was flattish during 3QFY2013. Further, the WTI (West Texas Intermediate) crude oil price also remained flat, broadly reflecting a flattish move in the price of Brent crude. Average Henry Hub natural gas price increased by 17.2% qoq after falling steeply over the past one year. Further, the Asian spot LNG price remained firm on account of demand-supply mismatch in Asia. Prices of petrochemical products, on the other hand, increased by 7.1% on a qoq basis during 3QFY2013.

      During September and October 2012, the Indian crude oil basket for oil prices stood at US$112/bbl and US$110/bbl, respectively. Rise in international crude oil prices coupled with INR depreciation against the USD resulted in higher under-recoveries for oil marketing companies (OMCs) on account of selling diesel, kerosene and domestic LPG at subsidized rates. During the first half of December 2012, OMCs continued to lose Rs 411cr per day. OMCs continued to lose Rs 9.3/liter, Rs 30.1/liter and Rs 521/cylinder on diesel, kerosene and domestic LPG, respectively.

      3QFY2013 expectations
      For 3QFY2013, we expect mixed profitability performance for our coverage companies. For RIL, we expect the top-line to increase by 5.7% yoy on account of higher prices of petrochemicals. However, its operating profit is expected to decrease by 0.8% yoy mainly due to decline in production from the KG D6 block. Nevertheless, its PAT is expected to increase by 15.0% yoy mainly due to increase in other income.

      For ONGC, we expect net sales to increase by 6.5% yoy while its operating profit is expected to decrease by 10.1% yoy due to higher employees cost. GAIL is expected to report a top-line growth of 6.4% yoy on account of increase in volume. Its net profit is expected to increase by only 5.1% yoy due to higher top-line growth. Cairn India's net sales are expected to increase by 47.8% yoy mainly on account of increase in volumes; its operating income is also expected to increase by 40.2% yoy. Its bottom-line is expected to increase by 52.3% mainly due to increase in operating income.

      Company Name

      		Net Sales (Rs Cr)

      		Net Profit (Rs Cr)

      		Reco.

      3QFY13E

      		% chg

      		3QFY13E

      		% chg

      Cairn India

      		4,576

      		47.8

      		2,986

      		52.3

      		Buy

      GAIL

      		11,986

      		6.4

      		1,147

      		5.1

      		Neutral

      ONGC

      		19,294

      		6.5

      		4,843

      		34.6

      		Buy

      RIL

      		89,981

      		5.7

      		5,108

      		15

      		Neutral

       

       

       

       

       

       

       

      Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

      first published: Jan 5, 2013 03:54 pm

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