ONGC, Oil India benefitting from high crude oil prices; paint, tyre industry get hit

Due to increased prices of crude oil, many companies are in profit, and many are in loss. While some sectors are moving positively, others don't. Zee Business' Kushal Gupta decodes the sectors involved and its reason.

Gupta said that one of the companies that had a positive impact on it is ONGC. The company was showing 4 per cent growth intraday even when the stock market is slumping.

Gupta explains that if the crude oil prices rise by USD 1, the Earnings per share (EPS) of the company in the produce also increases by 3 per cent. This means that the company gets a profit of Rs 4000 as EPS if the natural gas prices increase by USD 1.

Apart from ONGC, Oil India will get a benefit of over Rs 500 crore if the natural gas prices are increased by 1 USD, the analyst said.

Additionally, the oil exploration companies working for the Indian oil production companies, including Selan Exploration Technology Ltd., Hindustan Oil Exploration Company Ltd (HOEC), General Drilling Inc., can receive good numbers of order books he added.

General Drilling Inc's management told Zee Business that they are still maintaining their bid of Rs 270 crore and are receiving orders globally.

Asian Energy Services and Maharashtra Seamless - manufacturer of drilling pipes can also witness the positive impact of increased crude oil prices.

Coming to negative impact facing companies are from paint sector because their 40 to 60 per cent of expenses are made into crude oil derivatives, including Asian Paints, Berger Paints, Indigo Paints are coming under the heat.

Another sector that came under the brunt of increased crude oil prices is tyre companies, showing 3-4 per cent down movement because their cost component for the crude derivative stands at approximately 50 per cent.

Amidst the aviation sector, the turbine fuel companies are also showing negative impact because their cost component for crude oil is 40 per cent. As a result, there has been a downfall of 6 - 7 per cent in the aviation sector internationally.

Additionally, the Pet Coke industry related to cement will also be impacted negatively. 

Lastly, the logistics and food sector is expected to show a negative impact as well.

For more details, Watch Full Video Here:-

CrudeOil में उबाल: पॉजिटिव और निगेटिव?

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