Oil & Gas Q3 Results Preview - A Sharp Turnaround From Q2: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.We expect Q3 FY23 earnings for the 12 oil and gas companies under our coverage to show strong sequential improvement, with operating earnings likely up by a massive 82% QoQ to Rs 661 billion and net income up 4.1 times QoQ to Rs 312 billion. Bulk of the improvement is likely to be driven by sharp turnaround by the oil marketing companies, which should see a sharp narrowing of marketing losses on retail fuels and steady gross refining margins in Q3. We expect Reliance Industries Ltd. to see a strong recovery QoQ with stronger oil-to-chemical plus Jio plus retail supporting a 5% QoQ jump in consolidated Ebitda. For upstream, net realisations (net of windfall tax) are expected to remain steady at $73.5-74.1/barrel of oil while gas utilities’ earnings will likely continue to be impacted by weak demand and lower trading margins (for GAIL India Ltd.). City gas distributions are expected to see the impact of higher gas costs on earnings, but aggressive pass-through of the same implies the damage to operating earnings would be relatively mild..Click on the attachment to read the full report:.Oil & Gas Q3 Preview - Operationally Strong Results Likely: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Oil & Gas Q3 Results Preview - A Sharp Turnaround From Q2: ICICI Securities

Bulk of the improvement is likely to be driven by sharp turnaround by the oil marketing companies.

Choose a plan