Gas price reduction will lower earnings for ONGC, Oil India: Moody's1 min read . Updated: 05 Oct 2020, 11:46 AM IST
These companies are already grappling with low oil prices and a further reduction in natural gas prices will exacerbate their earnings decline
SINGAPORE : The recently-announced 25% reduction in domestic natural gas prices to 1.79 dollars per million British thermal units (MMBtu) from 2.39 dollars per MMBtu on a gross calorific value basis is credit negative for upstream companies like Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) as it will lower their revenue from gas sales, according to Moody's Investors Service.
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