UTV: Rally in crude oil fuels oil exploration stocks
Shares of three oil exploration firms gained 0.24% to 2.42% at 11:30 IST on BSE, after crude oil prices rose almost $1 a barrel in Asian trade on Thursday, 3 June 2010.
Cairn India gained 1.60% to Rs 295.15. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) advanced 2.42% to Rs 1211. India's second biggest oil and gas exploration firm by revenue, Oil India, rose 0.24% to Rs 1280.
On BSE, Oil India reported volumes of 54,004 shares, ONGC clocked volumes of 99,154 shares and Cairn India notched up volumes of 76,803 shares.
Meanwhile, the BSE Sensex was up 297.90 points, or 1.78% to 17,039.74
Shares of ONGC and Oil India had risen sharply over the past few days after the government more than doubled the price of gas sold by state-run firms from gas blocks awarded to them on nomination basis. ONGC outperformed the market over the past one month till 2 June 2010, rising 12.06% as compared to the Sensex's 4.65% decline. It had also outperformed the market in the past one quarter, gaining 6.26% as compared to the Sensex's 0.18% fall.
Oil India outperformed the market over the past one month till 2 June 2010, rising 13.84% as compared to the Sensex's 4.65% decline. It had also outperformed the market in the past one quarter, gaining 12.27% as compared to the Sensex's 0.18% fall.
Cairn India underperformed the market over the past one month till 2 June 2010, falling 7.73% as compared to the Sensex's 4.65% decline. It had outperformed the market in the past one quarter, gaining 7.43% as compared to the Sensex's 0.18% fall.
Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms. Light, sweet crude oil rose 97 cents or 1.33%, to $73.83 per barrel in Asian electronic trade on Thursday, 3 June 2010 as US crude inventories fell more than expected last week.
ONGC's net profit surged 71.1% to Rs 3776.41 crore on 7.4% rise in net sales to Rs 14713.26 crore in Q4 March 2010 over Q4 March 2009.
Oil India's net profit jumped 509.2% to Rs 430.99 crore on 34% rise in net sales to Rs 1832.14 crore in Q4 March 2010 over Q4 March 2009.
Cairn India's consolidated net profit jumped 1212.6% to Rs 245.19 crore on 281.2% surge in net sales to Rs 692.83 crore in Q4 March 2010 over Q4 March 2009.
