Oil Stocks Outlook for the week – 15 to 19.02.2016
(PSU
retailers seen upbeat on Oct-Dec performance)
( www.rupeedesk.in )
Shares
of the state owned oil marketing companies Indian Oil Corp Ltd,
Bharat
Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd are
expected
to gain next week backed by good Oct-Dec earnings
performance,
though a weak broad market may cap the upside.
Shares
of upstream companies Oil and Natural Gas Corp Ltd and Oil
India
Ltd may continue to perform poorly tracking crude oil prices and
weak
market sentiments. All three oil marketing companies reported Oct-
Dec
earnings after market hours yesterday.
BPCL's
net profit for Oct-Dec almost tripled to 14.9 bln rupees from 5.5
bln
rupees a year ago with gross refining margin growing five-fold to
$7.67
a barrel. Indian Oil reported net profit of 30.6 bln rupees in Oct-
Dec,
compared with net loss of 26.4 bln rupees in the same quarter last
year.
Its GRMs increased to $5.96 per barrel, from (-) $7.73 a year ago,
despite
inventory loss of over $5 a barrel. Healthy margins are especially
impressive,
given 13% crude price correction in Q3 (Oct-Dec).
HPCL
swung into the black with a bottomline of 10.4 bln rupees in
Oct-Dec,
compared with a loss of 3.2 bln rupees a year ago aided by
GRM of $7.86 per barrel, compared with (-) $0.97/barrel a year ago