ONGC's overall profitability was below I-direct estimates and the company reported a net loss of Rs 247.7 crore on account of an exceptional provision for disputed taxes. The Board recommended a final dividend of Rs0.5 per share
Q4FY23 Earnings Summary
ONGC's revenue was down ~6% QoQ to Rs 36293 crore on account of lower oil realisation QoQ (I-direct estimate: Rs 37826 crore). Gross oil realisation was down 11.5% QoQ to US$ 77.1/bbl following the decline in global oil prices. Gas realisation increased remained flat QoQ at US$ 8.57/mmbtu (on GCV basis)
Oil production declined 3% QoQ and stood at 5.24 MMT (I-direct estimate: 5.46 MMT). Gas production was down ~2% QoQ at 5.26 BCM (I-direct estimate: 5.38 BCM)
EBITDA during the quarter was down 20% QoQ to Rs 16340 crore below I-direct estimate of Rs 20760 crore due to higher than expected other expenses. The company made an exceptional provision of Rs9235 crore towards disputed taxes for the period from April 1, 2016 to March 31, 2022.
Subsequently, the company reported a net loss of Rs 247.7 crore ( I-direct estimated PAT of Rs 11823 crore)
ICICIdirect Research view on Oil & Natural Gas Corpn Ltd Stock
View: ONGC's net oil realisation would remain capped at US$75-76/bbl due to the imposition of windfall tax. Domestic gas prices have been revised to a ceiling of US$6.5/mmbtu for the next two years. This would reduce the company's gas realisation QoQ but still continue to remain above historical averages. Increase in oil and gas production from KG Basin would be key monitorable in near term.
Impact: Neutral
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