Oil and Natural Gas Corporation (ONGC) announced an increase in its stake in subsidiary ONGC Petro Additions Ltd (OPaL) from 94.57% to 95.69%. The move was facilitated through a ₹4,906.20 crore rights issue, involving the purchase of 490.6 crore equity shares priced at ₹10 each.
OPaL operates a sprawling petrochemical complex spread over five square kilometers, capable of producing 1.1 million tonnes of polyethylene annually, along with 1,100 KTPA of ethylene and 400 KTPA of propylene. The facility also includes advanced units for pyrolysis gasoline hydrogenation, butadiene extraction, and benzene extraction. For FY24, OPaL reported a turnover of ₹14,323 crore.
The investment, approved by ONGC’s board on September 25, 2024, aligns with government initiatives to enhance downstream integration. The rights issue maintained parity for all shareholders, ensuring adherence to governance norms.
ONGC recorded a net profit of ₹11,984 crore in Q2 FY24, a 34% increase quarter-on-quarter, exceeding market expectations. Improved operational efficiencies and higher margins contributed to this growth, with EBITDA margins rising to 50.3% from 48.1% in the previous quarter. The company’s revenue for the quarter stood at ₹33,881 crore, while EBITDA reached ₹17,025.2 crore, both aligning closely with market estimates.
Oil and Natural Gas Corporation (ONGC) is India’s largest state-owned oil and gas exploration and production company, playing a pivotal role in the country’s energy security. Established in 1956, ONGC is a Maharatna PSU under the Ministry of Petroleum and Natural Gas and is recognized globally for its extensive operations, which span across exploration, production, refining, and petrochemicals.
It is a major contributor to India’s crude oil and natural gas output, meeting a significant share of the nation’s energy needs. With a focus on innovation and sustainability, ONGC is also expanding its presence in renewable energy and downstream integration. The company’s robust financial performance, diverse portfolio, and strategic investments make it a cornerstone of India’s energy sector.
