ONGC jumps after clarification

ONGC rose 7.98% to Rs 128.55 after the company said that its offshore crude supply remained unaffected by the recent fire accident in Mumbai unit.

The company said that an unfortunate accident took place at Uran oil and gas processing plant in Mumbai on 3 September 2019. The accident occurred near demineralized water plant (oily water sewage pit) and CISF security cabin which was outside the main process area. All out efforts were made to control the situation and fire was brought under control within a short span of time with the internal safety provisions aided by MARG (Mutual Aid Resource Group).

ONGC added that gas processing was restricted to maintain supplies to internal power generation and also to meet the requirements of Mahanagar Gas and the remaining gas quantities are diverted to the other processing unit of the company at Hazira plant.

However, the offshore crude supply remains unaffected and the impact of fire in local vicinity is NIL, ONGC added.

Meanwhile, shares of Mahanagar Gas advanced 1.06% to Rs 846.60.

On the BSE, 7.83 lakh shares were traded in the ONGC counter so far compared with average daily volumes of 5.24 lakh shares in the past two weeks. The stock hit a high of Rs 129.8 and a low of Rs 119.1 so far during the day.

The stock hit a 52-week high of Rs 185 on 24 Sep 2018. The stock hit a 52-week low of Rs 115.55 on 04 Sep 2019.

On a consolidated basis, the oil and gas company's net profit declined 19.39% to Rs 6,693.61 crore on 0.77% fall in the net sales to Rs 109,514.82 crore in Q1 June 2019 over Q1 June 2018.

ONGC is the largest oil and gas exploration and production company in India in terms of production and reserves of oil and gas for the 2019 fiscal year according to the Ministry of Petroleum and Natural Gas.

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