ONGC Q2 Profit Up 18% to ₹9,848 Cr; Forms Ethane Shipping JV with MOL Japan
ONGC demonstrated strong financial performance with 18% profit growth in Q2 FY24 and expanded strategically through joint ventures with Japan's MOL for ethane transportation, marking significant business diversification into maritime logistics while maintaining focus on energy security and operational excellence.
*this image is generated using AI for illustrative purposes only.
Oil & Natural Gas Corporation (ONGC) reported an 18% year-over-year increase in standalone net profit for the second quarter ended September 30, 2023, driven by higher oil and gas prices. The state-owned oil explorer also declared an interim dividend of ₹6 per share and recently entered into a strategic partnership with Japan's Mitsui O.S.K. Lines Ltd. for ethane transportation.
Financial Performance
| Metric: | Q2 FY24 | Q1 FY24 | Change |
|---|---|---|---|
| Net Profit: | ₹9,848.00 crore | ₹8,024.00 crore | +18% YoY |
| Revenue from Operations: | ₹33,031.00 crore | - | -2.5% YoY |
| Other Income: | ₹3,424.00 crore | ₹1,211.00 crore | +183% |
Segment Performance
| Segment: | Q2 FY24 Revenue (₹ Crore) | Q2 FY24 Profit (₹ Crore) |
|---|---|---|
| Offshore: | 22,898.00 | 9,158.00 |
| Onshore: | 10,133.00 | 2,017.00 |
The offshore segment continued to be the major contributor to ONGC's revenues and profits, accounting for nearly 70% of total revenue.
Strategic Joint Venture Development
ONGC signed Joint Venture Agreements and Capital Contribution Agreements with Mitsui O.S.K. Lines Ltd. (MOL), Japan, to subscribe equity shares in two joint venture entities - Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited, both registered in Gift City, Gandhinagar.
| JV Parameter: | Details |
|---|---|
| ONGC Investment: | ₹2,00,000 equity shares per JV (₹100 per share) |
| Equity Stake: | 50% each in both entities |
| Partner: | Mitsui O.S.K. Lines Ltd., Japan (50%) |
| Purpose: | Ethane transportation using VLECs |
Each joint venture company will own and operate one Very Large Ethane Carrier (VLEC) under the Indian flag, deployed for transporting ethane from the United States to meet feedstock requirements of ONGC Petro additions Limited (OPaL).
Dividend Declaration
The ONGC board declared an interim dividend of ₹6.00 per equity share (120% of face value) for FY 2023-24. The total payout amounts to ₹7,548.00 crore, with the record date set as November 14, 2023.
Other Strategic Investments
ONGC approved an investment of up to ₹421.50 crore in its wholly-owned subsidiary ONGC Green Limited, demonstrating the company's commitment to renewable energy expansion. The ethane shipping venture aligns with the Maritime Amrit Kaal Vision 2047, emphasizing national self-reliance and maritime infrastructure development.
Historical Stock Returns for Oil & Natural Gas Corporation
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.35% | +1.69% | -4.98% | -20.42% | -9.40% | 0.0% |
18
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
