Oil & Gas - Q2FY21 Result Preview - ICICI Securities

Global crude oil prices remained range bound in Q2FY21E as Brent oil prices were in the range of US$40-45/bbl. Average crude oil prices recovered from Q1FY21 lows significantly. While economic activities picked up pace, rise in Covid-19 infections and subsequent concerns on demand outlook kept prices under pressure. As a result, Brent crude oil prices on a closing basis were flattish QoQ at US$41/bbl at end of Q2FY21. However, average Brent crude oil prices increased to US$42.8/bbl, a sharp increase of US$11.4/bbl QoQ. Hence, net realisations of upstream companies are expected to increase considerably QoQ.

CGD sales improve, industrial PNG sees faster recovery

City gas distribution (CGD) companies' sales volume will fall in the range of 3-36% YoY on account of the localised lockdown. While industrial PNG sales volume witnessed a faster recovery to reach near normal, CNG sales were still down YoY but sharply increased QoQ. Domestic PNG sales volume will remain steady. Gross margins will remain higher YoY due to low gas prices. For large gas utility companies, volumes are expected to decline YoY. However, fall in sales volume will be lower compared to CGD companies.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_OilGas_Q2Y21.pdf

Source : Equity Bulls

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