Oil companies to report big losses

April 2020 \ Business & Investment \ BUSINESS AND GOVERNANCE

Oil companies to report big losses

State-owned oil marketing companies (OMCs) including Indian Oil ...

The present situation has also resulted in declining sales in the City gas distribution segment. City gas distribution (CGD) companies’ sales volumes are expected to take a hit during the quarter due to reduced sales on account of nationwide lockdown in March. These restrictions will affect CNG & industrial/commercial PNG sales. But domestic PNG sales volume will continue to report steady growth.

A decline in gas prices will lead to higher gross margins YoY for all CGD companies. For large gas utility companies also, volumes are expected to fall due to lower demand mainly in March.