ET Intelligence Group: ONGC and Oil India might move beyond their sluggish trading ranges after a year because of the significant increase in oil subsidy provisions in the FY20 interim budget.
State-owned upstream companies are trading at less than seven times their one-year forward earnings and figure among the cheapest exploration and production companies globally due to uncertainties over subsidies. New Delhi has increased the oil subsidy provision by 62 per cent to Rs 33,700 crore for FY20, in line with Street estimates.
The budget provisions indicate that the government could manage the burden if crude oil remained in the range of $60-65 per barrel and it need not pass the incremental costs on to state-owned oil explorers. Read More
Latest posts by The Economic Times (see all)
- Coal India, SCCL workers plan strike on September 24 - September 17, 2019
- CIL drops plan to cut supplies to inefficient power plants - September 16, 2019
- Power gencos outstanding dues on discoms rises by 57 per cent to Rs 73,748 crore in July - September 15, 2019