Oct 13, 2000|
Energy - Ominous times
The Indian oil companies are in the doldrums with crude oil prices almost doubling over the past 12 months. Consequently, all companies have taken a hit on their operating margins.
Prior to FY98 the refining industry was regulated. Refinery product prices were set by the Oil Coordination Committee (OCC) under the administered pricing mechanism (APM).
When oil zig margins zag
FY98 saw the dismantling of the APM at the refinery level. Also, crude oil prices during the year fell to 20 year lows of $10/barrel. Both these factors contributed to Indian Oil Corp. (IOC) and Bharat Petroleum (BPCL) reporting a 7% growth in operating margins. HPCL, however, showed a 7% drop in operating margins.
In response to the crash in oil prices the Organisation of Petroleum Exporting Countries (OPEC) carried out production cuts over FY99 and FY00. The aggregate production cut was to the tune of 4.6 m barrels / day (mbd). Subsequently, crude oil prices have been rallying and touched a ten-year high of $ 35/barrel in September '00.
In the current financial year the OPEC has undertaken three production hikes to cool down the oil markets. The ensuing winter months are expected to keep oil prices firm and a drop in prices is seen only in the fourth quarter of FY01. Consequently, the pressure on operating margins for the Indian companies may ease only post 3QFY01. The year may not be a one to remember for these companies.
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Mar 27, 2017
GAIL (India) Ltd has announced results for the quarter ended December 2016. reported 9.4% year on year (YoY) decline in sales, while bottom-line grew 45.4% YoY.
Mar 17, 2017
ONGC has announced results for the quarter ended December 2016. The company has reported 9.2 % year on year (YoY) growth in sales, while bottom-line grew 197% YoY.
Jan 24, 2017
Oil India Limited announced results for the quarter ended September 2016. The company has reported an 6.5% and 7.8% Year on Year (YoY) decline in sales and net profit respectively during the quarter.
Dec 3, 2016
GAIL (India) Ltd has announced results for the quarter ended September 2016. The company has reported 16 % year on year (YoY) decline in sales, while bottom-line grew 180% YoY.
Nov 3, 2016
ONGC has announced results for the quarter ended September 2016. The company has reported 10.3 % year on year (YoY) decline in sales, while bottom-line grew 6.3% YoY.
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