Showing posts with label oil and gas. Show all posts
Showing posts with label oil and gas. Show all posts

22 January 2015

Energy: Floored but may rise :: Kotak Securities

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Floored but may rise. We believe global crude oil prices are unlikely to fall further as
we see near-term curtailment in production of high-cost shale oil in the US and oil
sands in Canada, which may reduce the current excess supply. IEA’s current supplydemand
estimates also suggest the call on OPEC crude will increase to nearly 30 mn b/d
(current production quota) in 2HCY15. We see recovery in oil prices to US$60-70/bbl
over the next 12 months; however, the stocks are already discounting that.


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21 January 2015

Sector Preview Q3FY15 - Oil & Gas :: HDFC Securities

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13 January 2015

Oil & Gas Sector | Q3FY15E Results Preview (Cairn India, GAIL, Oil India & ONGC) -IndiaNivesh

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09 January 2015

Energy: Good time for reforms, not so much for stocks :: Kotak Securities

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Good time for reforms, not so much for stocks. We revise our estimates for PSU
energy companies while factoring in lower crude prices. We prefer BPCL (upgrade to
BUY) among the PSU energy stocks, as we see the current pessimism on its E&P
business as an opportunity to buy. Lower crude price environment can act as a blessing
in disguise, only if the government is willing to undertake bolder reforms to (1) curb
fuel subsidies substantially and (2) formulate a sustainable subsidy-sharing framework.

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Energy: Energy: Normal economics at play now Kotak Sec,

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Oil and gas ƒ Brent crude prices decline sharply in Q3FY15ƒ :Q3FY15 Result Preview : ICICI Securities, report

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08 January 2015

Oil - Downstream Achchhe din :: HDFC Securities

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Markets remained volatile .. Oil slips below $ 50 ::HDFC Securities

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31 December 2014

Petrol, diesel price cut likely as New Year’s gift :: ET

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26 December 2014

Where Will Crude Oil Prices Go in 2015? ::Edelweiss

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23 December 2014

Oil & Gas - Christmas Gift to City Gas Distribution; Sector Update :: Edelweiss, link

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18 December 2014

Crude Oil & Indian Market !!! :: IIFL

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05 December 2014

Energy: Almost there :: Kotak Sec, links

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Almost there. We revise our estimates of OIL and ONGC to factor in lower global
crude price assumptions and weaker currency forecasts of our economics team. We
retain our ADD rating on ONGC and our BUY rating on OIL with revised target prices of
`420 (-2%) and `700 (-3%) respectively, as we see scope for rerating of earnings and
valuation multiples while noting catalysts from (1) clarity on subsidy-sharing mechanism
and (2) potential reduction in subsidies on cooking fuels.


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03 December 2014

OPEC aims to retain long-term dominance by letting market forces determine oil prices :Kotak Sec,link

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2QFY15 GDP finds silver lining in agriculture; industry looks anemic
2QFY15 GDP growth at 5.3% was slower than 5.7% in 1QFY15. For 1HFY15, GDP growth was at
5.5% against 4.9% in 1HFY14. On the production side, the upside surprise partly came from the
agriculture and allied sector with a print of 3.2% in 2QFY15 from 3.8% in the last quarter. In line
with relatively weak IIP in the quarter, industrial growth had a muted print of 2.2% in 2QFY15
after a strong print of 4.2% in the previous quarter. A significant downtick in manufacturing
(0.1% yoy) was probably not surprising, given also the weaker merchandise exports performance
in the quarter ((-)1.6% as per expenditure side data). While mining sector was relatively muted at
1.9%, growth in electricity and construction was buoyant at 8.7% and 4.6%, respectively. While
industrial growth has bottomed, a sharp pick-up may be unwarranted due to the continuing
haziness of investment demand in the economy.
Services sector remains healthy
The growth of 7.1% in services in 2QFY15 was largely driven by ‘financing, insurance, real estate
and business services’ and ‘community, social and personal services’. The former slowed marginally
from 10.4% to 9.5% while the latter (a proxy for government spending) picked up to 9.6% from
9.1% in 1QFY15. ‘Financing, insurance etc.’ also witnessed a robust growth of 9.5% and is
expected to continue to perform better in the future quarters as inflation remains low and some
amount of pick-up in economic activity is seen. We expect services to grow at 7.2% in FY2015.
Consumption provides boost to expenditure-side GDP
On the expenditure side, the drag on growth came from investments and net exports. While gross
fixed capital formation growth was flat, net exports was a drag on GDP growth by 0.8%pt. On the
other hand, consumption demand was supported by 10.1% increase in government consumption,
while private consumption grew at 5.8%. Total consumption expenditure contributed 4.5%pt to
the headline real GDP growth print of 6% at market price.
GDP seen to rise to 5.5% in FY2015
Growth dynamics appear to have bottomed out. Global developments of softer crude oil prices
and commodity prices and the concurrent drop in the retail inflation (especially food) are likely
positive factors that can support a pick-up in overall growth. While industry is expecting some
monetary accommodation to support growth, easier interest rate is just not one factor in the
growth dynamics. Much of the future growth dynamics will depend on the continuation of the
government’s efforts to address the revival of the investment cycle. This will only be possible if the
government is able to address the structural issues in the economy, including labor laws, land
acquisition issues, unlocking capital from stalled projects, all directed towards improvement in the
productivity levels in the economy. For FY2015, we now see a growth of 5.5% (marginally lower
than our earlier estimate of 5.6%). Hoping that there are no adverse global shocks in the next few
months, FY2016 growth is seen at ~6%.

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02 December 2014

Oil and Gas - Crude Wars; Sector Update :: Edelweiss, link

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07 November 2014

Viewpoint: Crude Tanks Further as Saudi Arabia Cuts Prices :: HDFC Securities

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13 October 2014

Q2FY15E Results Preview | Oil & Gas Sector : IndiaNivesh

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 In Q2FY15, Brent average crude price decreased 7% QoQ to US$102.5/bbl
driven by rise in output from Iraq and Libya in spite of the unrest in the region,
higher production from US and lower demand from China due to economic
slowdown.
 Upstream companies revenue would be supported by lower under recovery
in Q2FY15. We estimate subsidy at Rs. 205 bn (down 28% QoQ) benefited
from Stable rupee dollar exchange rate, monthly hike in diesel prices and
lower crude prices. We assume upstream sharing would be 50% of total
subsidy.
 Refining margin is expected to hurt slightly due o decline in GRMs. Singapore
GRM declined 19% QoQ from USD5.8/bbl to USD4.7/bbl, touching low of
USD2.5/bbl in July-end, as auto-fuel cracks declined.
 Petchem business would be benefited from increase in the margins across all
the petchem products. Petchem margins would expand QoQ basis led by
higher polymer and polyester spreads
 Spot LNG prices declined during the quarter due to seasonality factor and
lower global demand which is likely to benefit GAIL’s spot LNG volumes along
with marketing margins on spot sales.
 Expect Cairn’s revenues to decline led by lower oil production volumes, due
to shutdown in Mangala processing terminal.



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27 September 2014

Fuel prices: Government plans to cut diesel prices by Rs 2 per litre :: ET

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After deferring gas price hike ahead of Assembly elections, the government plans a big cut in diesel prices while state oil firms are preparing to slash petrol rates, a move that can brighten the BJP's prospects in Maharashtra and Haryana.

Diesel prices may fall about Rs 2 per litre next week, the first rate cut for the fuel since January 2009.



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22 September 2014

Buy DCB Bank; Sector alerts Energy:: Kotak Securities, PDF link

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Company alerts
DCB Bank: An exciting journey ahead

Sector alerts
Energy: Awaiting royal(ty) decisions



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21 September 2014

Nestle, J & K Bank, Oil & Gas, Economy:: Kotak reports from 19 Sep :: Kotak Sec, PDF report link

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Company
Nestle India: RM/pricing tailwinds drive EPS upgrades; valuations stretched
` Multiple tailwinds drive upgrades to our EPS estimates
` However, core concerns remain; retain SELL with revised target price of
Rs5,300
` We note we have baked in a robust volume/earnings recovery over
CY2014-16E


J&K Bank: Floods send fresh pangs of pain
` 50% of the loan book within the state of J&K is probably at risk
` Guidelines from RBI indicate a sharp rise in restructured loans
` An overhang that is likely to extend beyond a year; NPLs could rise
moderately in the short term
` Maintain REDUCE as the concerns continue to increase

Sector
Energy: BPCL>IOCL>HPCL
` Sharp increase in normalized net debt of HPCL and IOCL; modest increase
for BPCL
` BPCL's operating cash flows fund capex, leading to enhancement of core
business
` Increase in net debt for IOCL is associated with significant capex in
greenfield projects
` HPCL's rising net debt has not resulted in much improvement in core
business metrics
` BPCL remains our preferred pick among OMCs


Economy
Economy: Notes from Delhi: strong government commitment
` Activity level is palpable
` Focus on urban development
` Stable macro picture, numbers can take some time to deliver
` Government committed to reforming the capital market



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