Higher crude realisations have analysts upbeat on ONGC, Oil India

ONGC reported standalone earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Rs 18,810 crore

Oil India (OIL) and Oil and Natural Gas Corporation (ONGC) had similar performances in the July-September quarter (Q2). Both oil producing companies benefited from higher crude realisations. Both had their upside capped by the windfall tax. Both suffered due to weak gross refining margins (GRMs) affecting their subsidiaries, The Numaligarh Refinery (NRL) and Hindustan Petroleum Corporation (HPCL). International crude prices to which ONGC and OIL’s realisations are linked, remained high through Q2, although they moderated a little compared to Q1. The Indian crude basket averaged $97.87 per barrel through Q2, versus $109 per barrel in Q1. (The Q3 average is