Company Update : ONGC Ltd By Motilal Oswal Financial Services Ltd
EBITDAX beats estimates; high DDA drags PAT
* ONGC’s 4QFY25 revenue came in 7% above our est. at INR350b.
* Crude oil/gas sales were above our est. at 4.8mmt/3.9bcm. VAP sales stood at 645tmt (est. 696tmt).
* Reported oil realization was USD73.7/bbl, at a USD3.1/bb discount to Brent during the quarter.
* While crude oil production was flat QoQ/YoY, natural gas production was at similar levels QoQ but declined 6% YoY.
* EBITDAX also stood 5% above our est. at INR190b (up 9% YoY), while PAT of INR64.5b was 22% below our est.
* Higher-than-estimated DDA, dry well write-offs, and survey costs, along with lower-than-estimated other income, led to a miss on PAT.
* Its 4QFY25 financial performance was also impacted by an FX gain of INR130m.
* In FY25, ONGC’s net sales/EBITDA remained at similar levels YoY, while PAT was down 11% YoY.
* The Board has recommended a final dividend of INR1.25/share (FV: INR5/share; total dividend for FY25: INR12.25/sh).
* ONGC Videsh Limited
* OVL’s oil production was at a similar level YoY at 1.79mmt, while gas production was 0.8bcm (-5% YoY).
* Crude oil sales stood at 1.18mmt (marginally down YoY), while gas sales came in at 0.39cm (-12% YoY).
* OVL’s revenue was INR30.3b (similar YoY), and PBDT stood at INR12.6b (-35% YoY).
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