Oil and Natural Gas Corporation Ltd
NSE:ONGC
Oil and Natural Gas Corporation Ltd
Oil and Natural Gas Corporation Ltd. (ONGC) stands as a titan in the energy sector, representing India's pivotal player in oil and natural gas exploration and production. Born in the early shadows of India's independence, the company has evolved from a modest exploration outfit into a sophisticated upstream enterprise that commands a significant chunk of the nation's oil and gas market. At the heart of ONGC's operations is its extensive portfolio of onshore and offshore assets, spread across the Indian subcontinent and beyond. The company's pursued quest for energy involves scouring vast landscapes and seabeds, employing cutting-edge seismic technologies and drilling techniques to pinpoint and extract hydrocarbon reserves. This relentless exploration underpins the company’s strategic prowess, ensuring a steady inflow of resources and keeping India's energy aspirations aflame.
The financial lifeline of ONGC courses through the veins of these upstream operations, as the lion's share of its revenue stems from crude oil sales to refineries and natural gas supply to industries and power plants. Beyond mere extraction, ONGC’s business model extends into the valued creation of derivatives, capitalizing on the volatile commodity market to fortify its bottom line. With an eye on sustainability and diversification, the company has also ventured cautiously into renewable energy spaces, albeit retaining its primary focus on hydrocarbon ventures. As the world shifts towards cleaner energy, ONGC's strategic adaptations ensure that it remains not only relevant but prosperous, expertly balancing traditional energy demands with modernity's beckoning transition.
Oil and Natural Gas Corporation Ltd. (ONGC) stands as a titan in the energy sector, representing India's pivotal player in oil and natural gas exploration and production. Born in the early shadows of India's independence, the company has evolved from a modest exploration outfit into a sophisticated upstream enterprise that commands a significant chunk of the nation's oil and gas market. At the heart of ONGC's operations is its extensive portfolio of onshore and offshore assets, spread across the Indian subcontinent and beyond. The company's pursued quest for energy involves scouring vast landscapes and seabeds, employing cutting-edge seismic technologies and drilling techniques to pinpoint and extract hydrocarbon reserves. This relentless exploration underpins the company’s strategic prowess, ensuring a steady inflow of resources and keeping India's energy aspirations aflame.
The financial lifeline of ONGC courses through the veins of these upstream operations, as the lion's share of its revenue stems from crude oil sales to refineries and natural gas supply to industries and power plants. Beyond mere extraction, ONGC’s business model extends into the valued creation of derivatives, capitalizing on the volatile commodity market to fortify its bottom line. With an eye on sustainability and diversification, the company has also ventured cautiously into renewable energy spaces, albeit retaining its primary focus on hydrocarbon ventures. As the world shifts towards cleaner energy, ONGC's strategic adaptations ensure that it remains not only relevant but prosperous, expertly balancing traditional energy demands with modernity's beckoning transition.
Profit Growth: ONGC reported consolidated net profit of INR 11,946 crores in Q3 FY'26, up 23% year-on-year, mainly driven by strong subsidiary performance.
Dividend Milestone: The Board declared a second interim dividend of INR 6.25 per share, taking cumulative interim payout to a record INR 15,411 crores in FY'26.
Production Outlook: Standalone crude oil and natural gas production showed stability and growth; guidance for FY'27 targets 42.5 million tonnes oil & gas equivalent.
Major Projects Progress: KG 98/2 and Daman projects are on track, with significant new gas output expected from Q1 FY'27 and further ramp-up by year end.
Cost Control: ONGC highlighted ongoing structural cost reduction efforts, targeting INR 1,000 crores in annual savings through efficiency measures.
Petrochemical Turnaround: OPaL achieved 92% capacity utilization and was EBITDA positive, with expectations for improved performance as prices recover.
Guidance Maintained: CapEx for FY'27 guided at INR 32,000–33,000 crores; no further capital infusion expected for OPaL.
International Operations: Progress reported in Mozambique and Venezuela projects; Sakhalin operations continue with dividend repatriation expected.
