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ONGC Q3 Earnings: Net profit likely to decline by 11%

Updated : February 14, 2020 09:59 AM IST

Oil and Natural Gas Corporation (ONGC) is set to reports its December-quarter results on Friday. The third-quarter is expected to be weak for the company.

Here are the key expectations:

  • The revenues are seen to be flat at Rs 24,300 crore.

  • The EBITDA is likely to see a decline of around 4 percent at around Rs 7,430 crore because of low domestic gas prices.

  • Operating profit margins could decline by 230 basis points (bps).

  • Net profit is expected to decline by 11 percent.

  • Oil production is expected to decline 1 percent sequentially and 4 percent on a year-on-year (YoY) basis.

  • The gas production is expected to see a steeper decline of 8 percent on a YoY basis across all the fields.

  • In terms of realisations, as far as the oil realisation is concerned, the analysts are expecting some bump-up as, on a quarter-on-quarter (QoQ) basis, the crude prices were moving up. The realisations are expected at $62.7 per barrel versus $0 per barrel seen in last quarter.

  • In terms of sales, the street is expecting oil sales to decline again at 3 percent on a YoY basis and 4 percent on a sequential basis. Gas sales are also expected to decline on a YoY basis, however, in terms of a sequential basis, some uptick might be seen.
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