DSIJ.in JULY 22 - AUG 4, 2019 I DALAL STREET INVESTMENT JOURNAL (^97)
tonnes of crude oil in FY19, down from 35.7 million tonnes in
FY18, according to data released by the Ministry of Petroleum
and Natural Gas. However, the natural gas production edged up
to 32.9 billion cubic metre (BCM) in FY19, from 32.6 BCM in
the previous year as ONGC produced 5.3 per cent more gas at
24.67 BCM.
We have considered top 25 companies from the sector based on
market cap comprises. ONGC, Indian Oil Corporation (IOCL)
and Bharat Petroleum Corporation Ltd (BPCL) are the
companies with highest market capitalisation within the sector.
The revenues of ONGC, IOCL and BPCL have grown in double
digits. The revenue of these companies in FY19 grew by 25.2
per cent, 19.7 per cent and 21.9 per cent, respectively. ONGC’s
net profit grew by 30.4 per cent yoy in FY19, however IOCL
and BPCL net profit de-grew by 26.8 per cent and 10.7 per cent
yoy in FY19. Some of the outperforming companies in this
sector were Hindustan Oil Exploration and Jiya Eco-products.
Both have shown tremendous growth of 444.3 per cent and
87.1 per cent, respectively, in revenues, while their net profits
recorded growth of 313.9 per cent and 66.2 per cent,
respectively.
Natural gas companies like GAIL, Indraprastha Gas, Adani
Gas, Gujarat Gas and Confidence Petroleum performed well
during FY19. The revenues of all these companies grew in
double digits, recording growth of 39.3 per cent, 26.8 per cent,
25.1 per cent, 25.6 per cent and 65.5 per cent, respectively. The
net profit of these companies too grew strongly by 24.3 per
cent, 16.2 per cent, 38.9 per cent, 43.2 per cent and 142.2 per
cent, respectively. However, companies like Deep Industries,
Asian Oilfield Services and Aban Offshore de-grew in FY19 on
yoy basis. Jindal Drilling staged a turnaround as it earned net
profit of 40.01 crore in FY19 as against net loss of19.27 crore
in FY18. However, Chennai Petroleum turned into a loss-
making company with a net loss of 219.3 crore in FY19 as against net profit of907.6 crore in FY18.
In FY19, the crude oil prices were too volatile. From April to
September 2018, the crude oil prices ranged between $70-75
per barrel. Between October to December 2018, the price
dipped to as low as $46 per barrel. Again, in the last quarter of
FY19, the price had surged and the year ended with the price
closing at $64 per barrel.
Considering the volatility of crude oil prices, the pressure on
profit margins of both upstream and downstream oil
companies is expected to continue going forward. Also, the
CNG and PNG prices are rising, which would benefit the gas
distribution companies. The growth in volumes would drive the
toplines of these companies.
As per the IBEF data, the crude oil consumption is expected to
grow at a CAGR of 3.6 per cent to 500 million by 2040 and the
natural gas consumption is forecasted to increase at CAGR of
4.31 per cent to 143.08 million by 2040. Bharat Petroleum,
Hindustan Petroleum and Indian Oil Corporation plan to
spend US$ 20 billion on refinery expansions by 2022.
60.92 101.05 100.90 44.59 30.76 10.31 -39.72 12.95 12.13 13.22 5926.00 5922.00 2959.00
17.23 19.03 15.05 25.18 31.21 30.42 -9.47 11.72 13.44 6.48 6290.15 6416.63 6416.63
23.41 41.88 50.73 19.73 -15.39 -26.83 -44.11 20.11 20.63 15.71 9414.16 9711.81 4855.90
45.80 66.51 123.38 21.99 -1.10 -10.73 -31.13 25.22 29.22 30.78 1966.88 1966.88 1311.25
21.28 19.91 14.74 39.38 24.28 24.33 6.86 11.49 10.43 5.28 2255.07 2255.07 1691.30
47.37 81.07 138.05 21.67 7.97 -2.30 -41.57 25.31 31.36 24.78 1523.82 1523.82 1015.88
14.07 22.98 12.37 25.48 -0.57 3.52 -38.76 23.10 22.99 14.75 1500.00 1500.00 750.00
10.31 43.31 32.71 26.86 12.59 16.21 -76.19 19.52 19.48 17.23 140.00 140.00 140.00
36.14 19.92 34.59 28.82 42.34 7.97 81.45 6.60 3.92 8.24 1084.41 756.60 801.51
2.08 1.47 NA 25.14 24.47 38.95 41.50 20.75 0.00 NA 109.98 256.74 NA
21.24 16.02 13.80 25.60 10.01 43.19 32.57 16.50 13.76 10.64 137.68 137.68 137.68
11.37 19.81 4.70 15.40 -48.71 -80.21 -42.62 17.97 42.33 8.94 1752.60 1752.60 1752.60
17.71 13.15 9.84 28.70 24.28 25.99 34.68 30.30 30.52 12.25 563.97 563.83 563.59
3.93 2.22 1.57 3.62 -0.38 76.82 76.82 2.36 1.35 0.96 85.28 85.28 85.29
17.29 22.70 8.65 22.70 -13.51 -20.32 -23.83 14.72 22.26 9.72 67.27 67.27 67.27
62.27 70.57 51.14 18.13 -75.23 NA -11.76 24.53 34.84 35.10 148.91 149.00 149.00
2.88 2.76 0.38 444.29 509.85 313.95 4.04 10.42 11.15 1.71 130.51 130.51 130.51
1.04 0.19 0.04 65.56 78.05 142.19 435.87 12.83 2.51 0.51 27.38 25.88 25.88
24.19 22.02 22.82 -1.26 -11.47 -12.12 9.87 18.37 23.77 17.58 32.00 32.00 32.00
2.71 -6.98 -12.12 -12.77 -19.21 -11.69 NA 11.85 -83.01 -114.50 38.07 38.07 26.07
5.37 1.49 4.10 14.77 2.52 6.98 259.48 14.31 4.51 13.98 89.97 89.97 89.97
1.14 2.40 1.19 9.35 45.03 79.33 -52.53 3.23 7.52 5.08 31.41 31.41 31.41
-2.87 27.52 44.52 39.24 NA NA NA -1.14 1.02 2.06 14.49 14.49 14.49
7.88 3.87 3.09 87.13 74.53 66.19 103.53 30.32 19.94 18.90 30.07 10.72 10.72
-446.62 -178.35 -41.30 -42.17 NA NA NA -196.40 -32.90 -5.34 11.67 11.67 11.67
EPS () YoY Growth FY19 (%) RoNW (%) Equity ( in Cr.)
FY19 FY18 FY17 Sales Operating Profit PAT EPS FY19 FY18 FY17 FY19 FY18 FY17
martin jones
(Martin Jones)
#1