ONGC Stock: In the dynamic world of India’s energy spectrum, Oil and Natural Gas Corporation Limited (ONGC) stands tall as a powerhouse, steering the nation’s oil and gas landscape with resilience and innovation. Boasting a substantial market capitalization of nearly 2,46,448 crores, ONGC not only symbolizes financial robustness but also serves as a beacon of excellence in the energy sector. As we embark on this journey, we’ll break down ONGC’s stock performance and explore its noteworthy Q2 results for the fiscal year 2023-24.
Weekly Chart: A Phenomenal Growth Journey
Witness the remarkable ascent of ONGC stocks, delivering an extraordinary return of over 150% in the last three years.
In 2020, the stock traded around 65 rupees per share, soaring to a staggering 180 rupees per share by 2023. This phenomenal growth underscores ONGC’s resilience and attractiveness as an investment option
Quarterly Results Q2 FY 23-24: A Surge in Profits
ONGC’s second-quarter results for FY 2023-24 reveal a substantial surge in consolidated net profit, skyrocketing by 142% to ₹16,553 crore compared to ₹6830 crore in the corresponding period last year. Despite a 13% decline in revenue from operations to ₹146,873.73 crore, the state-run petroleum giant’s financial prowess is evident. ONGC’s board has approved a generous interim dividend of 115%, amounting to ₹5.75 on each equity share of ₹5, totaling ₹7,234 crore. The company’s production statistics, including a 2.1% drop in crude production and a 2.8% decrease in natural gas production.
ONGC attributed the decrease in production output to the decline in certain matured and marginal fields. Additionally, a shutdown was initiated in Panna-Mukta to commission a new crude oil pipeline as part of efforts to enhance evacuation capacities and upgrade offshore facilities. This temporary production loss was incurred following the takeover from a joint venture partner, as clarified by the oil explorer.
Key Discoveries and Exploration Initiatives
ONGC has declared total five discoveries (two in onland and three in offshore) during FY 2023-24 in its operated acreages. Out of these, three are prospect (offshore) and two in onland are new pools. ONGC has monetized two discoveries till date during FY 2023-24 – Gopavaram-21(FY 2023-24) and Karugorumilli-1 (FY 2022-23). ONGC is committed to increasing domestic oil and gas production. The company has been investing heavily in exploration and production activities, and these investments are starting to pay off.
Strategic Joint Ventures: Diversifying Horizons
ONGC’s strategic joint ventures play a pivotal role in diversifying its operations:
- OPaL (ONGC Petro-additions Limited): A major dual-feed petrochemicals complex in South Asia.
- OTPC (ONGC Tripura Power Company Ltd): A natural gas-based gas turbine thermal power plant.
- OTBL (ONGC TERI Biotech Ltd): Focused on developing technologies for bioremediation of soil and enhanced oil recovery.
- IGGL (Indradhanush Gas Grid Ltd): Extending the gas network in the North-East region with a 1656 Km long north-east Gas Grid.
- MSEZ (Mangalore Special Economic Zone): Facilitating infrastructure and locating industrial establishments, along with Dahej SEZ Ltd.
ONGC’s remarkable growth journey and the factors propelling its success create a tempting investment opportunity. Yet, it’s crucial for investors to conduct thorough research, aligning their choices with personal financial goals for sound decision-making.
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