State-run oil & gas explorer ONGC is expected to report dismal earnings performance in Q4 due to 20 percent sequential decline in net oil realisations and a 9 percent fall in gas production (following two shutdowns in western offshore in January-March).
Similar to Q3, any impairment provisions could impact profitability.
Analysts say as oil prices have remained weak, and domestic gas prices have reduced further by a sharp 20 percent from April 1 (2016), the near-term outlook also remains weak for ONGC.
According to analysts polled by CNBC-TV18, profit is expected to be in range of Rs 1,500-2,500 crore in Q4 against Rs 1,286 crore in Q3. Revenue is seen falling 15 percent to Rs 15,682 crore compared to preceding quarter.
Operating profit may decline 25 percent to Rs 6,045 crore and margin may contract by 400 basis points to 39 percent on sequential basis.
Key issues to watch out for would be subsidy sharing, DD&A charges, oil & gas production volumes, and new investments in KG Basin following new deepwater gas pricing policy.