Oil, gas producers ride the wave of rising crude prices
//WEB// Analysts at Prabhudas Lilladher believe that ONGC’s net oil realization is likely to remain around $70 a barrel post windfall tax. The company expects volumes to rise, especially with the commencement of oil production from KG 98/2 in Q3FY24.
Analysts at Prabhudas Lilladher estimate ONGC’s oil production to rise to 23.9 mmt (million metric tonne) in FY25 compared to 22.36 mmt in FY24 (21.49 mmt in FY23). Gas production is also estimated to grow to 25.4 BCM (billion Cubic meters) compared to 22.98 bcm estimated for FY24 and 21.35 bcm in FY23.
The rising production will be positive for earnings growth. Analysts at ICICI Securities also said they expect growth to improve through the rest of FY24, with steadily growing production and steady realisations to drive relatively stronger growth for both companies.
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