GAIL, India's largest gas company, has infused INR 2,100 crore ($283.7m) in JBF Petrochemicals Ltd, a private sector chemical company it acquired through bankruptcy proceedings. The sum will be used to finance 625 crore of equity and 1,476 crore of debt to complete GAILs bankruptcy resolution plan. The purchase sees JBF become a wholly-owned subsidiary of GAIL from 1 June 2023.
ONGC to maintain financial flexibility as earnings steady: S&P
S&P Global Ratings expects a rise in operating cash flows for India's largest oil and gas producer, ONGC, due to higher production volumes and the removal of the windfall tax on crude oil. The increase is expected to help the company maintain its credit quality. S&P predicts that ONGC's domestic production volumes will be up by 8-10% by 2024. Its EBITDA for fiscal years 2024 and 2025 is forecasted to be Rs 1-1.1 lakh crore, while investments of approximately Rs 47,500 crore will be made. Additionally, ONGC has committed to net-zero for scope 1 and 2 emissions by 2038.
Big Movers on D-Street: What should investors do with Suzlon Energy, Torrent Pharma and Sona BLW?
Benchmark indices in India closed lower on the last day of May, with the S&P BSE Sensex declining 346 points, and Nifty50 settling at 18,534 levels, amid negative global market signals. The auto and FMCG sectors saw gainings, while bank, metals, and financials dragged. Stocks in focus include Suzlon Energy, which gained 10%, Torrent Pharma, up 6.15%, and ONGC, down nearly 6%. Stoxbox Head-Technical Analyst Rohan Shah advises investors to buy Torrent Pharma, stating the stock has been trading in an ascending channel and Suzlon Energy, stating the stock has risen over 52% and may attract further upward moves above Rs 11.50.
ONGC, Indian Oil, Power Finance Corporation (PFC), REC, SAIL, General Insurance, Oil India, and New India Assurance are among the PSUs trading below their book value. ONGC, which rallied 10% in the last six months, is trading at a book value of 0.71 times. According to the Bloomberg Consensus estimates, the stock is expected to yield 18% in a year.
Big Movers on D Street: What should investors do with Hikal, JSW Energy and RVNL?
Benchmark indices, S&P BSE Sensex and Nifty50, rose on Tuesday, supported by foreign institutional investor inflows and firm Asian markets. The financial services, services, teck, capital goods, bankex, IT and industrials sectors rallied, while commodities, energy, telecommunication, auto and consumer durables pulled back. Hikal gained 8.5%, while M&M rose 4.08%, though shares in ONGC fell nearly 5%. Technical analyst Viral Chheda recommends investors should buy Hikal at the current price, buy JSW Energy above INR270 ($3.63), and buy RVNL above INR123 when considering limited downside risk and upward potential of 6-8 months.
ONGC’s profitability is directly linked to oil prices. Yet, above the critical threshold of around $75 per barrel, any gain from rising oil prices are offset by an increase in windfall tax.
Big Movers on D-Street: What should investors do with Prince Pipes, M&M and ONGC
Indian equity markets began the week by rising due to the positive outlook in global markets and breakthroughs in US debt ceiling negotiations. The S&P BSE Sensex increased 344 points while the Nifty50 settled at 18,598 levels. The consumer durables and metals sectors gained the most, while oil and gas, IT, and energy were the laggards. Among the stocks in focus, Prince Pipes gained 5%, M&M rose by 3.37%, and ONGC fell about 3%. Technical and Derivative Research Analyst at Reliance Securities recommended investors buy Prince Pipes, sell M&M and ONGC.
ONGC to invest Rs 1 trillion in green energy, to bid for offshore wind project
"We have done our internal workings and are now confident that we can achieve net-zero for Scope-1 and Scope-2 emissions by 2038," Singh said, adding that the company will invest Rs 1 lakh crore towards the same. As part of the initiative, ONGC wants to grow its renewable power portfolio to 10 gigawatts (GW) by 2030 from 189 megawatts at the end of March. Of this, the company has already signed an MoU to set up 5GW and is scouting for opportunities to set up another 5GW.
ONGC to invest Rs 1 trillion in green energy, to bid for offshore wind project
"We have done our internal workings and are now confident that we can achieve net-zero for Scope-1 and Scope-2 emissions by 2038," Singh said, adding that the company will invest Rs 1 lakh crore towards the same. As part of the initiative, ONGC wants to grow its renewable power portfolio to 10 gigawatts (GW) by 2030 from 189 megawatts at the end of March. Of this, the company has already signed an MoU to set up 5GW and is scouting for opportunities to set up another 5GW.
ONGC to invest Rs 1 lakh cr in energy transition, targets net-zero by 2038
India's top oil and gas producer ONGC will invest Rs 1 lakh crore by 2030 on energy transition projects as it targets net zero carbon emissions by 2038, its chairman Arun Kumar Singh said on Monday. The firm joins fellow state-owned oil and gas firms Indian Oil (IOC), Hindustan Petroleum (HPCL), GAIL and Bharat Petroleum (BPCL) in preparing roadmaps for net zero emissions as part of the nation's commitment to deal with the climate challenge.
ONGC Videsh has less than $100 million stuck in Russia, says official
Indian state oil firms have invested USD 5.46 billion in buying stakes in four different assets in Russia. These include a 49.9 per cent stake in the Vankorneft oil and gas field and another 29.9 per cent in the TAAS-Yuryakh Neftegazodobycha fields.
ONGC shares fall over 4% after Q4 profit declines 53%. What should investors do now?
ONGC's consolidated net profit fell 53% YoY to INR 5,701cr ($768m) for the March quarter, while revenue from operations increased 5% YoY to INR 1.64 lakh crore. On a standalone basis, ONGC reported a net loss of INR 248cr, compared to a profit of INR 8,860 crore in the same quarter last year. Brokerage firms have mixed views on the company: JM Financial has maintained its buy rating, while YES Securities suggests adding the shares, and ICICI Securities recommends buying with a target price of INR 164 ($2.21).
Buy Oil And Natural Gas Corporation, target price Rs 200: JM Financial
The brokerage has cut its FY24 PAT estimate by 5% and FY25 PAT estimate by 15% to factor in higher continued provision for SC/GST on royalty, higher dry well write-off, and weak FY23 results. Hence, it has further slashed its TP to INR 200/share (from INR 220/share).
ONGC puts a date to start of KG gas, seeks $12 price
India's top oil and gas producer ONGC has set June 15 as the start date for its KG basin gas field, seeking a price of USD 12 for the fuel. It will start production with 0.4 million cubic metres per day and ramp it up to 1.4 million by February 5, 2024. It has asked companies to bid for the gas who must also quote a premium above the base price, which is calculated based on 14% of the Brent oil price plus USD 1 per million British thermal unit.
ONGC's net sales for the March quarter are seen rising 4 percent YoY to Rs 35,772.5 crore, while a 24 percent YoY growth is likely in the profit after tax at Rs 10,957.9 crore, Kotak Institutional Equities has said
Indian state oil companies in talks to buy stake in Tullow's Kenya block: Oil India
Oil India, along with ONGC Videsh, the overseas investment arm of Oil and Natural Gas Corp, are talking to Tullow, Rath said, without elaborating on the size of a possible stake.
BP, Petronas in race to invest in Greenko founders’ new platform
The new platform is planning to produce 4-5 MTPA of green ammonia, green methanol and electrolysers at Kakinada in Andhra Pradesh, incurring a capital expenditure of $10 billion.
Oil India doubles down on drilling, EOR to boost output
Oil India, which reported a record-high profit of Rs 6,810 crore for 2022-23, increased its oil production by 5.5% to 3.18 million metric tonnes (mmt) and gas output by 4.4% to 3.18 billion cubic meters (bcm) during the year. The growth is on top of the output expansion that has gone into offsetting the natural decline in matured fields, chairman and managing director Ranjit Rath said.
Oil Ministry working on proposal to merge MRPL with HPCL
The idea of the MRPL-HPCL merger had been floated soon after ONGC acquired HPCL from the government five years ago but made little progress. The ministry is now pushing for the merger, which is likely to be a share-swap deal, said the people cited above.
ONGC Videsh has been present in Myanmar, Bangladesh, Vietnam, South Sudan and Columbia for years. In some projects, it has made discoveries and also put them into production while in others, it is looking for a commercially viable find. The massive Mozambique gas project in which ONGC as well as a few other Indian state-run firms are invested has yet to take off due to the security situation in that country.
Domestic crude oil production falls 4%, natural gas declines 3% in April: Oil ministry data
Oil and Natural Gas Corps (ONGC) crude oil production fell 6% from a year earlier while the output at Oil India Ltd and the private sector producers remained nearly stable. For years, India has found it hard to arrest the decline in crude output as producing fields have natured while new major discoveries have been hard to make.
ONGC, Oil India in talks for 50% stake in $3.4 bn Kenya oilfield, Chinese firm enters fray
ONGC Videsh, India's flagship overseas oil firm, has teamed up with Oil India to replace IndianOil for the potential acquisition of a 50% stake in Tullow Oil's $3.4bn oilfield project in Kenya, according to insiders. But, their joint effort faces competition from Chinese energy giant, Sinopec, which reportedly entered the purchasing race because of the delay by the Indian negotiators.
Jain has been appointed as the Chairperson PNGRB "for a period of five years from the date assumption of charge of the post or till attaining the age of 65 years, or until further orders, whichever is the earliest, on a consolidated pay package of Rs 4.50 lakhs per month (without house and car) or as revised by the Ministry of Finance from time to time," the ACC order of May 15 said.
OIL, ONGC shares gain 2% after govt slashes windfall tax to nil
The windfall tax on crude petroleum has been slashed to nil from Rs 4,100 per tonne, according to a notification issued by the government late on May 15.
Proposed change to forest law will boost oil exploration
India's hydrocarbon exploration could be boosted by a proposal to amend the forest conservation law.The Forest (Conservation) Amendment Bill envisages seismic surveys would not be treated as a non-forest activity but explorers would be granted prompt access to forests, cutting time-consuming permit seeking. A seismic survey is the initial stage to determine evidence of economically viable hydrocarbon resources below the ground.
ONGC Videsh has drawn the facility and used the funds to repay $500 million in bonds that matured last week. The company had raised $800 million in bonds to meet its financing needs for the ACG project in Azerbaijan in 2013. Bonds worth $300 million with a tenure of five years matured in 2018 while the balance of $500 million with a tenure of 10 years has matured now.