Dec 4, 2001|
Energy: Are sunny days here again?
The petroleum sector, after a sizable hiatus, has some reason to cheer. Petroleum product sales have moved higher YoY in the month of October '01. On the other hand the news is not so encouraging on the upstream front.
Crude oil production has stagnated at 32 m metric tonnes (MMT) over the past couple of years. In fact, private operators are not able to entirely compensate the decline in Oil & Natural Gas' (ONGC) production. Production of the natural resource over the past six months, since start of fiscal '01, has slipped 3.1% YoY. This is steeper compared to the 1.1% drop in production in the same period last year. Based on these numbers, it seems imperative for the Government to channel investments in the oil upstream sector at a faster pace. Bombay High operations of ONGC, which contribute a lion's share to sales, reported a 7.4% decline in output over the concerned period.
At the refining end, the news does not seem to be any better for the month of September '01. After holding fort for the first five months of the year and the only infrastructure industry to report positive growth over the same period, crude throughput declined 2% YoY in September '01. The biggest losers were Indian Oil, Kochi Refineries and Mangalore Refineries. Due to the wide consumption of petroleum across industries the sales tend to reflect the health of the economy. However, the belief is that the economy has made headway after the lows in September '01.
The silver lining has been reports of higher petroleum product sales in the month of October '01, which could vindicate the above statement. Indicators that boost morale are the rise in diesel sales, which has the largest share in petroleum product sales. Diesel sales tend to rise in the month of October after the monsoon season. However, the YoY change accounts for seasonal changes. The rise is likely to be a result of an improving commercial vehicle (CV) market and the likely turnaround in a slowing economy. Lubricants, after more than a year, have reported an increase in sales registering a growth of 14.3% YoY. One could attribute this to higher diesel sales. The driver could be an improving commercial vehicle (CV) and passenger car market.
Sunny days seem to be rising for the refining sector, oil prices have declined to touch two year lows of $17 / barrel. Oil prices, currently, trade at $18.9 / barrel, which is significantly lower compared to last year's levels. This is likely to ease pressure on the refining margin. Adding to the improved scenario are glimpses of higher petroleum product sales.
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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.
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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.
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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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