ONGC jumps after strong Q3 outcome

ONGC rose 3.48% to Rs 136.70 at 9:29 IST on BSE after net profit rose 64.8% to Rs 8,262.70 crore on 20.4% increase in net sales to Rs 27,694.09 crore in Q3 December 2018 over Q3 December 2017.

The result was announced after market hours yesterday, 14 February 2019.

Meanwhile, the S&P BSE Sensex was down 57.12 points, or 0.16% to 35,819.10.

On the BSE, 3.03 lakh shares were traded in the counter so far compared with average daily volumes of 4.17 lakh shares in the past two weeks. The stock had hit a high of Rs 139.40 and a low of Rs 135.05 so far during the day. The stock hit a 52-week high of Rs 194.15 on 27 February 2018. The stock hit a 52-week low of Rs 127.90 on 14 February 2019.

ONGC got $66.38 for every barrel of crude oil it sold in the quarter, 13.6% higher than $58.42 per barrel realisation a year ago. Gas prices were 16.3% higher at $3.36 per million British thermal unit.

ONGC said total crude oil production dropped 4.8% to 6.036 million tonne, but total gas output rose 6.6% to 6.691 billion cubic metre.

Further, the ONGC board approved a proposal for buyback of its equity shares. Around 25.29 crore equity shares of the company will be bought back at the price of Rs 159 per equity share payable in cash. The total cost of this share buyback will not exceed Rs 4,022 crore, ONGC said in its statement. The process of buyback is likely to be completed in February 2019.

ONGC has notified total 11 discoveries so far in 2018-2019. These include four made in the October-December quarter. The company made oil and gas discoveries in Kutch offshore, Vindhyan Basin in Madhya Pradesh, Assam and in western offshore.

Two new basins i.e. Vindhyan and West Bengal have been upgraded to Category II during the current financial year. The appraisal plans are drawn to further upgrade them as producing basins, the statement said.

Maharatna ONGC is the largest crude oil and natural gas company in India, contributing around 70% to Indian domestic production.

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