Q2 Results Preview: OMCs to report robust earnings on sharp rise in refinery margins, IOC to lead the pack
₹3.3/litre in 2QFY24 from the record high of ₹8.8/litre in 1QFY24. Crude oil prices rose as high as 30 per cent in three months spanning July-September as the production cuts announced by Saudi Arabia and Russia have squeezed the global crude supply.
However, even on the rise in Brent crude prices, the reported GRMs (including inventory gains) of OMCs is likely to rise sharply by $14-19 per barrel in the September quarter, according to the domestic brokerage. Also Read: Q1 Results Review: OMCs report higher profit on soft oil prices, improved volumes; mixed results for CGDs Brokerage firm Motilal Oswal also foresees a robust quarter and notes that the profitability of OMCs may surge to ₹26,200 crore in Q2FY24 from a loss of ₹2,700 crore in Q2FY23, fueled by strong marketing margins.
However, in a recent report, Moody’s said that high crude oil prices will reduce the profitability of the three state-run OMCs in India -- Bharat Petroleum Corp Ltd (BPCL), Hindustan Petroleum Corp Ltd (HPCL), and Indian Oil Corp (IOC), all commanding a Baa3 rating by Moody's. "Exciting news! Mint is now on WhatsApp Channels
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