Moneycontrol
Last Updated : Feb 12, 2019 09:35 AM IST | Source: Moneycontrol.com

SpiceJet, IndiGo & Jet Airways fall 1-4% as crude prices surge

Oil prices rose on Tuesday amid OPEC-led supply cuts and U.S. sanctions against Iran and Venezuela, although analysts expect surging U.S. production and concerns over economic growth to keep markets in check.

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Shares of aviation companies are falling in trade on the back of higher crude oil prices.

SpiceJet, IndiGo and Jet Airways fell between 1 and 4 percent.

Oil prices rose on Tuesday amid OPEC-led supply cuts and U.S. sanctions against Iran and Venezuela, although analysts expect surging U.S. production and concerns over economic growth to keep markets in check.

U.S. West Texas Intermediate (WTI) crude oil futures were at $52.78 per barrel at 0329 GMT, up 37 cents, or 0.7 percent, from their last close.

The ongoing closure of parts of the Keystone pipeline that brings Canadian oil into the United States also helped prop up WTI, traders said.

International Brent crude futures were up 50 cents, or 0.8 percent, at $62.01 per barrel.

Analysts said markets are tightening amid voluntary production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and because of U.S. sanctions on Venezuela and Iran.

Investors could have also reacted to SpiceJet’s earnings for December quarter.

The airline posted a steep 77.1 percent year-on-year decline in profit to Rs 55.1 crore, dented by higher aircraft fuel expenses.

Its profit in same period last year was at Rs 240 crore.

The company said revenue from operations during the quarter grew by 20.2 percent to Rs 2,487 crore year-on-year.

At operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) plunged 62.7 percent YoY to Rs 113.2 crore and margin contracted to 4.5 percent in Q3 against 14.7 percent YoY due to more than 33 percent increase in operating expenses.
First Published on Feb 12, 2019 09:35 am
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