IndiaCatalog.com
India News
Search Web Directory
News Home
‘Buy’ on ONGC, Oil India; prefer IOCL to BPCL/HPCL
Posted on 9th March 2018
ONGC, Oil India and BPCL’s Area-1 project moved a step forward this week although FID may still be months away. Even so, with start-up only in 2023E, any earnings uplift is years away with development spend likely to weigh on cashflow in the interim with Oil India, BPCL more vulnerable to downside surprises than ONGC. Nonetheless, with valuations inexpensive we keep our ‘Buy’ on ONGC, Oil India preferring IOCL to BPCL/HPCL in downstream SOEs. The Anadarko operated Area-1 project where ONGC (16%), Oil India (4%) and BPCL (10%) are partners moved a step further to sanction with the Mozambique government approving the plan for the first two trains (12.9 MT) based off the Golfinho-Atum fields. FID, already delayed by several years, may still be some time away, though. ENI signed off on its smaller 3.3 MT Coral FLNG project in adjacent Area-4 only in November 16, e.g., nine months after the February16 government approval, with FID taking another seven months. Finalizing offtake and financing will be key for FID with Anadarko targeting 8.5 MT of SPAs (two third of capacity) to underpin this.

It has agreed key terms for 5.1 MT with the LNG deficit that may build post 2023 boding well LT. Yet, with buyer-seller expectations mismatched and supplies abundant for now, closing firm SPAs may remain challenging or involve concessions. Some 80 MT of new LNG supply is likely in 2018-19E, e.g., with low-cost Qatar also looking to expand by ~30%. Indeed, Shell suggests that offtake contracts are becoming shorter, smaller and riskier. We build a pricing mix that implies $8.5-9.0/mmbtu East Asia DES (or $7.5-8.0 FOB) at our $65/$3.5 Brent /HH LT forecasts (~13.5% slope). This is higher than what Brent/HH curves support with Asia LNG forwards ($6.2-8.5) lower on average too. We assume that 6-7% of LNG is sold domestically at $5 FOB. Pricing is uncertain, though, as is capex. A few years back Anadarko had estimated $12-16 billion for two 5-MT trains predicated on the excellent reservoir and well flow but we model a higher $20 bn that most other partners appear to suggest. At $1575/ tonne, though, even this will be competitive for an integrated LNG project.

Related Companies: Oil and Natural Gas Corporation Limited (ONGC)   Indian Oil Corporation   Bharat Petroleum   Hindustan Petroleum Corporation Ltd.(HPCL)

Other Latest News
Nirbhaya rape case: Convicts shifted to Tihar jail, likely to be hanged soon
Posted on 10th December 2019

The fourth convict in the Nirbhaya rape case has been shifted to Tihar Jail after one of the accused Pawan Kumar Gupta was moved from Mandoli jail in Delhi.

He is currently lodged in jail number 2 of Tihar, sources said. This has led to speculation that the four accused are likely to be hanged soon.


BJP confident Rajya Sabha will pass Citizenship Amendment Bill on Wednesday
Posted on 10th December 2019

The BJP is confident of the passage of the contentious Citizenship Amendment Bill in the Rajya Sabha which will be introduced in the upper house on Wednesday, sources said on Tuesday.

The bill piloted by Union Home Minister Amit Shah was comfortably passed in the Lok Sabha on late Monday night as the ruling BJP enjoys a clear majority in the house.


Supreme Court to hear petitions challenging abrogation of Article 370 today
Posted on 10th December 2019

The Supreme Court on Tuesday (today) will begin hearing on a batch of petitions challenging the constitutional validity of revocation of Article 370.

Article 370 guaranteed special status to the erstwhile state of Jammu and Kashmir which was abrogated by the Centre on August 5.

A five-judge bench comprising of Justices SK Kaul, R Subhash Reddy, BR Gavai and Surya Kant and headed by Justice NV Ramana will hear the case.


YES Bank hits 6-week low ahead of board meet; stock falls 24% in eight days
Posted on 10th December 2019

Shares of YES Bank declined 5 per cent to hit a six-week low of Rs 53.40 on the BSE ahead of the board meeting slated for later today to finalize and approve the details of the preferential allotment.

The stock of private sector lender was trading at its lowest level since October 29, 2019. In the past eight trading days, it has fallen 24 per cent, as compared to a 2 per cent decline in the S&P BSE Sensex.


PC Jeweller hits all-time low as CRISIL downgrade ratings to default grade
Posted on 10th December 2019
Shares of PC Jeweller continued to trade under pressure and slipped 5 per cent to hit a fresh all-time low level of Rs 23.50 on the BSE on Tuesday after rating agency CRISIL downgraded its long-term and short-term ratings to the company's bank loan facilities to CRISIL D. The instruments with this rating are in default or are expected to be in default soon, as per the rating agency.

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for ‘Buy’ on ONGC, Oil India; prefer IOCL to BPCL/HPCL
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for ‘Buy’ on ONGC, Oil India; prefer IOCL to BPCL/HPCL

Most Read News

HDFC Bank sees signs of rural revival as wider economy remains sluggish

JSW Steel eyes to supply 1.5 lakh tonne to metro rail projects in FY20

Coca-Cola moves out of bottling ops in North India, to divest three plants

Punjab police to provide free pick up, drop to women post 9 PM, announces CM

Tariff hike will boost govt revenue, telcos' financial health, says COAI

More India News

Photo Gallery

Volvo 8400(12 Images) Volvo 8400
Vivegam(10 Images) Vivegam
  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2019 IndiaCatalog.com
    All Rights Reserved
Privacy Statement