ONGC Q2 Profit Up 18% to ₹9,848 Cr; Forms Ethane Shipping JV with MOL Japan

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.68%	-1.70%	+4.77%	-0.42%	-8.20%	+157.67%

Oil & Natural Gas Corporation Ltd. (ONGC), a major player in India's oil and gas sector, witnessed a significant block trade on the National Stock Exchange (NSE) today. The transaction involved approximately 756,851 shares of the company, valued at Rs. 18.97 crores.

Block Trade Details

Aspect	Details
Number of Shares	756,851
Total Value	Rs. 18.97 crores
Price per Share	Rs. 250.65
Exchange	NSE

This block deal, executed at a price of Rs. 250.65 per share, represents a substantial transaction in ONGC's stock. Block deals typically involve large volumes of shares and are often carried out between institutional investors or large individual shareholders.

While the identities of the parties involved in this transaction have not been disclosed, such deals can sometimes indicate shifts in institutional holdings or strategic moves by large investors.

It's important to note that block deals, while significant, do not necessarily reflect the overall market sentiment towards a stock. Investors and market watchers often monitor these transactions for potential insights into institutional interest or large shareholder activity.

ONGC, as a key player in India's energy sector, continues to draw attention from both domestic and international investors. The company's performance and stock movements are closely watched as indicators of the broader energy market trends in India.