Volume growth, earnings prospects for gas distribution firms remain strong


Volume growth, earnings prospects for gas distribution firms remain strong

While the volatility in crude oil prices creates uncertainty for investors about the prospects of both upstream and downstream oil and gas companies, this is not the case for gas utilities (distribution companies). With no overhang of subsidy, the latter’s earnings have been resilient to the volatility in crude oil, as well as swings in foreign exchange rates, given their seamless pass-through of pricing, say analysts.

Oil marketing companies tend to benefit in a falling crude oil scenario. However, there are concerns on refining margins being impacted by inventory Read More

 

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