ONGC shares hit 52-week high as firm begins oil production in KG deep water block

Shares of ONGC Ltd hit a fresh 52-week high today after the firm announced successful commencement of first oil production from the deep-water KG-DWN-98/2 Block, situated off the coast of Bay of Bengal. ONGC shares rose 2.01% intraday to a high of Rs 220.75 on BSE. Total 6.53 lakh shares of the firm changed hands amounting to a turnover of Rs 14.30 crore. Market cap of the state-owned firm rose to Rs 2.74 lakh crore.   

ONGC stock has gained 6% this year and risen 47.63% in a year.

In terms of technicals, the relative strength index (RSI) of ONGC stands at 71.4, signaling it's trading in the overbought territory. The stock has a beta of 0.4, indicating very low volatility in a year. ONGC shares are trading higher than the 5 day, 10 day, 20 day, 30 day 50 day, 100 day, 150 day and 200 day moving averages.

Lauding the state-owned firm’s achievement, Prime Minister Narendra Modi said the production of first oil from its Krishna-Godavari deepwater block with estimated peak production of 45,000 barrels of oil per day is a ‘remarkable step in India’s energy journey’ and it will boost the government’s Aatmanirbhar Bharat mission.

“This is a remarkable step in India’s energy journey and boosts our mission for an Aatmanirbhar Bharat,” Modi said in a post on X, formerly Twitter, adding that it will also have several benefits for the country’s economy.

With commencement of this first oil from ‘M – field’ on January 7, 2024, ONGC is completing Phase 2, the state-owned firm said.

“The flagship project is on track with final phase of project planned to be completed by June 2024 and then onwards commencement of gradual ramping up to reach planned peak production of 45,000 barrels of oil per day (bopd) and 10 MMSCMD of gas from the deep-water KG-DWN-98/2 Block,” said ONGC in a communication to bourses.

ONGC reported a consolidated revenue of Rs 1.49 lakh crore in the September 2023 quarter against a revenue of Rs 1.70 lakh crore in the corresponding quarter a year ago.  

Operating profit climbed to Rs 28,255.3 crore in Q2 against Rs 13,804.4 crore in the corresponding quarter of the previous fiscal. Profit rose to Rs 13,734 crore in Q2 against Rs 8299.4 crore in the corresponding quarter of the previous fiscal.

For FY23, net profit climbed to Rs 35,440.5 crore against Rs 45,522 crore profit in FY22. Revenue from operations surged to Rs 6,40,400 crore in the last fiscal against Rs 4,98,707 crore for the fiscal ended March 2022.  

ONGC is a crude oil and natural gas company. The company's business segments include exploration and production, and refining and marketing. The company is engaged in exploration, development and production of crude oil, natural gas and value-added products.

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