IOC OIL INDIA MERGER

In an order, the ministry said the condition of export being allowed only through IOC will continue, but "AMI (Adnoc Marketing International (India) RSC Limited India) is exempted from STE conditions and is allowed to re-export crude oil from their commercial stockpile at Mangalore strategic petroleum reserve, at their own cost".

Brokerage firm Morgan Stanley maintained an overweight rating on RIL and an overweight rating on Indian Oil Corporation (IOC). Sharekhan recommended a buy on ICICI Bank and ICICIdirect has a buy rating on PCBL.

Sportz Interactive has partnerships with major sports organisations like F1, UEFA, IOC, NBA, MLB, and UFC. In India, the company works with the BCCI, IPL teams, sports broadcasters, and gaming companies.

OMCs' stocks plummeted up to 8% after a Rs 2 per litre price cut, impacting margins. Major companies like HPCL and BPCL faced significant share price declines. Motilal Oswal expects negative stock price reactions in near term.

The combined entity will be valued at over $1.1 billion, acquiring the heft that will help it compete with rivals. It will be a stock-for-stock merger — a share of one company for each of the other. Currently, I-Squared holds 100% stake in Think Gas Distribution and 73% in AG&P Pratham, the India arm of Singapore-based Atlantic Gulf & Pacific (AG&P) City Gas.

IOC would also start manufacturing similar grade fuel and thereafter pitch to automobile makers racing in F1. Unlike FIM Asia Road Racing Championship where there is one single fuel supplier for all the motorcycles racing, F1 allows teams to select their own fuel supplier. For instance, Shell is the fuel supplier to Ferrari.

The biggest state-owned refiner Indian Oil Corp. will likely reduce the amount of crude received under so-called term supply, while Bharat Petroleum Corp. and Hindustan Petroleum Corp. have decided against making firm commitments to take contracted oil next financial year, Bloomberg reported citing sources.

JM Financial maintained a buy rating on Go Fashion with a target price of Rs 1285. Go Fashion’s 9MFY24 performance has been below expectation, especially on the SSSG front, which, the brokerage firm believes, is more a function of the weak macro environment.

Indian billionaire Mukesh Ambani's Reliance Industries and Walt Disney Co. sign an $8.5 billion agreement for a merger, forming a dominant media giant in India. Reliance controls over 60% of the new entity, securing a powerful position in India's entertainment market. The joint venture gains exclusive rights to distribute Disney content in India and marks a significant boost for Reliance's streaming platform, Jio Cinema

Reliance Industries issued a statement on stock exchanges, refusing to comment on media speculation about its reported merger deal with Disney. The clarification mentioned the company's ongoing evaluation of opportunities, stating that there is no undisclosed information requiring disclosure under SEBI regulations. The reported merger between Viacom18 and Star India under Reliance's media unit and Disney's stake is anticipated to create India's largest media empire

Industry players cited tender document skewed in favour of IOC’s JV with L&T & Renew Power; 50 prospective bidders participated in pre-bid meet but eventually opted out, only 1 bid submit by IOC’s JV co. In a cancellation corrigendum issued on February 21, IOCL said, the tender stands cancelled. The company did not reply to an email sent till press time.

State-owned oil and gas companies, including IndianOil, ONGC, and GAIL (India), have been fined for the third consecutive quarter for not meeting listing norm requirements regarding the number of directors on their board. The fines, totaling Rs 32.5 lakh, were imposed by stock exchanges for the quarter ended December 31, 2023.

BPCL, HP, and IOC have the potential for increased PE multiples. OMCs derive over 50% of their EBITDA from retailing petrol and diesel, leading to stable YoY earnings. In the good cycle, that is when the oil prices are benign, all the oil marketing companies tend to trade in double-digit PE multiples. ONGC and Oil India need a clear roadmap for sustainable volume growth to achieve re-rating.

Both IOC and HPCL have given multibagger returns of 128% and 116%, respectively over the past 12 months while returns by BPCL have been to the tune of 80% during this period.

Indian state-owned fuel retailers, including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), are reportedly losing nearly Rs 3 per liter on diesel, with reduced profit margins on petrol due to international oil price fluctuations. Despite a record Rs 69,000 crore profit in the first nine months of the fiscal year, the companies have not revised fuel prices for almost two years, citing market volatility and previous unrecouped losses.

Indian Oil Corp, the leading refiner in India, anticipates a growth of 4.5% to 5% in its gasoline sales for the financial year ending on March 31, 2025, according to Satish Kumar Vaduguri, the head of marketing at the company. He further stated that the company also expects a 3% increase in diesel sales for the same financial year.

Indian Oil Corporation, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd reported bumper profit totalling over Rs 69,000 crore in the first nine months of the current fiscal, exceeding their annual earnings in pre-oil crisis years. The combined net profit of the three companies in April-December FY24 was better than their annual earning of Rs 39,356 crore in pre-oil crisis year. The retailers have not changed petrol, diesel, and cooking gas (LPG) prices for almost two years now, resulting in losses when input cost was higher and profits when raw material prices were lower. The three firms posted record earnings in the first two quarters of this fiscal year when international oil prices almost halved, but on a year as a whole, they had rich profits.

ONGC, IOC, and other oil PSUs plan to invest Rs 1.2 lakh crore in oil and gas exploration, refineries, petrochemicals, and pipelines in the coming fiscal year. ONGC's capital spending will be Rs 30,800 crore, slightly higher than the previous year. OVL, ONGC's overseas arm, will invest Rs 5,580 crore abroad. IOC will invest Rs 30,910 crore, primarily in refinery expansion. BPCL plans to spend Rs 13,000 crore, while HPCL will invest Rs 12,500 crore.

Finance Minister Sitharaman has deferred the Rs 15,000 crore equity infusion for fuel retailers to support energy transition projects. The budget documents did not provide any funds either in the current fiscal or the next for filling of the strategic reserves.

State-owned Oil and Natural Gas Corporation (ONGC) is seeking a premium over the government gas price for gas produced from coal seams in Jharkhand. Users are asked to quote a premium they are willing to pay over and above the monthly domestic natural gas price that the Oil Ministry's Petroleum Planning and Analysis Cell (PPAC) notifies.

"During FY 2022-23, no crude oil imports by oil PSUs was settled in Indian rupee. Crude oil suppliers (including UAE's ADNOC) continue to express their concern on the repatriation of funds in the preferred currency and also highlighted high transactional costs associated with conversion of funds along with exchange fluctuation risks," the oil ministry told the parliamentary department related standing committee.

IOC director (marketing) V Satish Kumar said, "The battery-swapping technology presents a significant opportunity for promoting sustainable electric mobility solutions. This facility is expected to play a pivotal role in the adoption of EVs and spearhead energy transition in eastern India."