![]() ![]() ''We estimate ONGC will invest about Rs 47,500 crore in total over the year. In fiscal 2024, the company will spend about Rs 32,000 crore at the standalone level and about Rs 14,000 crore at its subsidiary, Hindustan Petroleum Corp Ltd. S&P said ONGC is expected to continue to direct 55-60 per cent of its operating cash flows for capital investments over the next 12-24 months. The realization rate is in line with India's new gas price formula, calculated at 10 per cent of the average price of the crude basket in the preceding month, but capped at USD 6.5 per mmbtu,'' it said. ''In our view, the average realization on domestic gas production will be USD 6.5 per metric million British thermal unit (mmbtu) in fiscal 2024, compared with USD 7.5 per mmbtu in fiscal 2023. S&P Global Ratings forecasts that the Brent crude oil price will be USD 90 per barrel for the rest of 2023 and USD 85 per barrel for 20. We estimate the company's EBITDA at Rs 1-1.1 lakh crore over fiscals 20, compared with about Rs 98,700 crore in fiscal 2023,'' it said. ''Growth in production volumes will outstrip the impact of moderating oil prices on ONGC's earnings, in our view. OVL produced a total of 10.2 mmtoe in fiscal 2023, down from 12.3 mmtoe in fiscal 2022. Oil and Natural Gas Corporation produced a total of 42.8 million tonne of oil equivalent (mmtoe) in fiscal 2023 compared with 43.4 mmtoe in fiscal 2022. The increase is attributable to the start of oil production from its block in the Krishna Godavari basin later this year,'' S&P said.Īt the same time, production at the Sakhalin-1 project of ONGC Videsh Ltd (OVL) should also recover to fiscal 2022 levels, after a period of disruptions because of geopolitical issues. ''We estimate that ONGC's domestic production volumes will rise by 8-10 per cent for fiscal 2024 (year ending March 31). ONGC is India's largest oil and gas producer. ''This should help the company maintain its good credit quality, despite its investment plans and healthy shareholder distributions,'' the rating agency said in a statement. State-owned ONGC's operating cash flows will rise over the next 12-24 months due to higher production volumes, stable earnings from domestic gas production, and the removal of a windfall tax on crude oil, S&P Global Ratings said on Friday. ![]() PTI | New Delhi | Updated: 02-06-2023 15:35 IST | Created: 02-06-2023 15:25 IST Representative Image Image Credit: ANI ![]()
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