Deep Inds hits record high on bagging order Rs 1,400-cr from ONGC

Deep Industries zoomed 13.03% to Rs 445.50 after the company has received significant order from Oil and Natural Gas Corporation (ONGC) worth Rs 1,402 crore for production enhancement operations in mature field of the company's Rajahmundry Asset.

Production enhancement contracts (PEC) are aimed at increasing the production of hydrocarbons from the ageing, depleted and mature fields typically spanning around 15 years beyond the original life of the asset.

At Rajahmundry asset, the company wishes to further develop hydrocarbon reserves from the contract areas in a way that improves current production and ultimate recovery of hydrocarbons by application of safe and efficient operating practices and suitable techniques and technologies, it added.

The duration of the project is 15 years.

This is the largest project awarded to the company to date, more than doubling its current order book. As on 30 June 2024, the companys order book stood at Rs 1,246 crore.

Paras Savla, MD, Deep Industries, said, We are thrilled to announce this landmark achievement as we extend our expertise into Production Enhancement Contracts (PEC). This strategic win positions us to play an increasingly integral role in the evolving oil and gas services value chain.

With over three decades of experience in the sector, Deep Industries is well-equipped to optimize oil and gas production through the deployment of proven, advanced techniques. The PEC framework not only broadens our revenue streams but also enhances our profitability, making it a value-accretive proposition for our stakeholders. We remain confident in our ability to deliver exceptional outcomes, driving sustainable growth and long-term success.

Deep Industries is a leading provider of energy solutions. The company specializes in air and gas compression services, drilling and workover services, gas dehydration services, and integrated project management services. The company's comprehensive portfolio includes various machines, equipment, and tools used in the oil and gas industry from exploration and production services to midstream services.

The companys net profit jumped 21.9% to Rs 37.06 crore on 21.9% increase in net sales to Rs 123.46 crore in Q1 FY25 over Q1 FY24.

The scrip hit an all-time high of Rs 465.35 in intraday today.

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